Hong Kong and Macau police seize over $2.8M related to JPEX fraud case

One suspect was arrested while trying to destroy potential evidence with paper shredders and bleach in the bathtub of an apartment.

Authorities in Hong Kong and Macau have recently revealed arrests connected to the JPEX crypto exchange fraud case and highlighted that they are currently tracking down several other suspected figures.

On Sept. 29, local media outlet Radio Television Hong Kong reported that two Hong Kong men involved in the JPEX case were arrested. According to the report, the two were responsible for creating accounts in casinos based in Macau to allegedly launder illegal funds. As the suspects were arrested, the police froze casino assets and seized cash worth over 14 million Hong Kong dollars ($1.7 million).

Meanwhile, another local publication, the South China Morning Post, reported that two additional people were arrested, with one suspect allegedly found destroying potential evidence with paper shredders and bleach in the bathtub of an apartment. This brings the total number of detained suspects to 18. Furthermore, cash and gold worth 8.7 million HKD ($1.1 million) were seized in three apartments in the latest police operation.

Related: JPEX blames partners for ‘maliciously’ freezing funds, causing liquidity crisis

The scandal started when Hong Kong’s financial watchdog issued a warning against JPEX for promoting its services in Hong Kong without the proper licenses. Following the warning, the exchange hiked its withdrawal fees to almost $1,000, while its staff abandoned their booths at the recent Token 2049 event in Singapore.

Token 2049 在 9 月 13日至14 日於新加坡舉辦，交易所JPEX 在開展首日吸引許多民眾。
不到一天的時間，香港證監會發出警告，指交易所JPEX謊稱在香港持有牌照。
消息一出，JPEX位於Token 2049的攤位人去樓空，展攤甚至還變成觀展民眾的休息空間。#jpex #token2049 pic.twitter.com/9ixRfu3wAo

— 灰度 (@huidu_io) September 20, 2023

Since the case started, the authorities have arrested various figures related to the case, including crypto influencers and employees of JPEX. However, the masterminds behind the JPEX fraud scandal remain at large, and the Hong Kong police have enlisted the help of Interpol to locate the suspects.

According to the authorities, the JPEX scandal has become one of the largest fraud cases in Hong Kong, garnering over 2,300 complaints from victims and losses of around $178 million. Hong Kong’s Secretary for Security, Chris Tang Ping-keung, has pledged to bring justice to the victims and continue to pursue those responsible. 

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