Hong Kong Charges 16 in Alleged $205M JPEX Crypto Fraud as Interpol Hunts 3 More Suspects
Hong Kong authorities charged 16 individuals, including former lawyer and influencer Joseph Lam, in the JPEX cryptocurrency fraud case involving over 2,700 investors and losses of HK$1.6 billion ($205.8 million). This marks Hong Kong's largest alleged financial fraud. The charges include conspiracy to defraud, fraudulently inducing investment, and money laundering, with six suspects identified as core JPEX members and seven others as influencers or crypto traders. Interpol issued red notices against three fugitives believed central to the scheme. JPEX allegedly operated an unlicensed crypto platform, misleading investors about its legitimacy. Since September 2023, 80 arrests have been made and HK$228 million seized. This is Hong Kong's first Anti-Money Laundering Ordinance case related to cryptocurrency. The accused are scheduled to appear in court, and Hong Kong leader John Lee has called for increased investor education and a licensing regime.
JPEX Cryptocurrency Scandal Overview
Hong Kong authorities have charged 16 individuals, including former lawyer and social media influencer Joseph Lam, in connection to the JPEX cryptocurrency scandal. The case allegedly defrauded more than 2,700 investors, resulting in losses of HK$1.6 billion ($205.8 million). According to the police, this is considered the largest financial fraud in Hong Kong’s history.
Charges and Involvement
The charges against the accused include conspiracy to defraud, fraudulently inducing investment, and money laundering, as reported by the South China Morning Post. Among those charged, six are believed to be core members of JPEX's operations, and seven others, including Lam, are identified as influencers or individuals engaged in over-the-counter crypto trading.
Fugitives and Interpol Red Notices
Authorities revealed that Interpol has issued red notices for three fugitives allegedly connected to the scheme: Mok Tsun-ting, Cheung Chon-cheong, and Kwok Ho-lun. A red notice is used to locate and provisionally arrest individuals pending extradition. These individuals are believed to have played critical roles in the fraudulent operation.
JPEX’s Operational Violations
JPEX allegedly operated a cryptocurrency trading platform without proper licensing, misleading investors by presenting itself as a legitimate exchange. Since the case opened in September 2023, authorities have arrested 80 individuals and seized HK$228 million.
Legal and Regulatory Implications
This case marks the first application of Hong Kong’s Anti-Money Laundering and Counter-Terrorist Financing Ordinance to a cryptocurrency-related incident. The 16 accused are scheduled to appear in Eastern Court on Thursday to face charges.
Government Response
In response to the scandal, Hong Kong leader John Lee called for enhanced public awareness, stating that authorities should do more to provide education for investors about the risks involved in cryptocurrency investments. He also emphasized the need for a licensing regime to regulate the industry within the territory.