Cryptocurrency Fraud: Four More Arrested in Hong Kong and Macao
In a significant development, law enforcement agencies in Hong Kong and Macao announced on Friday that they had arrested four more individuals connected to the cryptocurrency platform JPEX. The platform has been under investigation for allegedly defrauding over 2,400 people, leading to losses amounting to nearly $200 million.
The recent arrests bring the total number of individuals detained in connection with this case to 18. So far, authorities have received a staggering 2,417 reports, alleging losses exceeding an equivalent of $191.6 million linked to the platform.
During a press conference held in Hong Kong, police revealed that two of the detainees had been arrested for their involvement with JPEX. One of them was caught in the act of attempting to destroy critical documents using paper shredders and bleach. In addition to the arrests, police seized cash and gold worth approximately $1.15 million from three apartments as part of their ongoing operation.
Two other individuals were taken into custody in Macao, with authorities confiscating over $1.8 million in cash and valuables, along with funds held in a casino account. Notably, these individuals had made frequent visits to Macao in September.
Assistant police commissioner Chung Wing-man stated that the investigation has now reached individuals who were “relatively close” to the core operations of JPEX. However, it remains uncertain whether the mastermind behind this fraud is an individual or a group of people.
Police are aware of additional individuals believed to be connected to the case who are currently not in Hong Kong. In such instances, cooperation with international authorities will be sought to bring them to justice.
The nature of this case presents unique challenges due to the use of thousands of e-wallets and tens of thousands of transactions. The anonymity of cryptocurrency in the cyber realm makes it challenging to identify the culprits behind this massive fraud, as highlighted by Cheng Lai-ki, chief superintendent of the police force’s Cyber Security and Technology Crime Bureau.
Earlier this month, the Hong Kong Securities and Futures Commission issued a warning, stating that JPEX was unlicensed and lacked the authority to operate a cryptocurrency trading platform within the city. Several investors had reported issues related to withdrawals and altered balances on the platform.
JPEX later suspended its trading operations, attributing the issues to a third-party market maker’s actions, which they claimed maliciously froze funds. Furthermore, several social media influencers who had been promoting JPEX were also arrested earlier this month.
The victims of this cryptocurrency fraud were predominantly inexperienced investors who were enticed by the promise of low risks and high returns. Authorities are determined to pursue the culprits and trace the misappropriated cryptocurrency to bring them to justice.