Hong Kong Police Charge 16 in Landmark JPEX Virtual Asset Fraud Case

In a significant development concerning the notorious JPEX virtual asset trading platform fraud, Hong Kong police announced today (October 5) that they have formally charged 16 individuals. This sweeping prosecution targets a diverse group, including alleged core members of the JPEX criminal syndicate, operators of over-the-counter (OTC) virtual asset exchanges, and prominent online influencers (KOLs).

The Commercial Crime Bureau of the Hong Kong Police Force confirmed that they have received over 2,700 reports from individuals claiming to be victims of the JPEX scam. While more than half of these complainants have either opted not to pursue the matter or could not be successfully contacted, the investigation has previously led to the arrest of 80 individuals, among whom 14 were identified as key members of the criminal network.

Authorities further disclosed that approximately HKD 228 million in assets linked to the case have been frozen. The 16 individuals were charged either today or at an earlier stage of the investigation. According to Hong Kong media reports, well-known KOLs Lam Chak and Chen Yi are among those facing charges.

Chief Superintendent Wong Chun-yu of the Commercial Crime Bureau provided details on the specific charges. Six alleged core members of the JPEX criminal syndicate face severe accusations, including conspiracy to defraud, money laundering, perverting the course of justice, and “fraudulently or recklessly inducing others to invest in virtual assets” under Section 53ZRG of the Anti-Money Laundering and Counter-Terrorist Financing Ordinance (Cap. 615). Additionally, seven individuals associated with OTC operations and various KOLs have been charged with fraud, money laundering, and fraudulently or recklessly inducing investment in virtual assets. Three individuals identified as holders of “mule” accounts face money laundering charges. The police have not yet publicly disclosed the identities of those charged.

This prosecution marks a pivotal moment in Hong Kong’s legal landscape, as it is the first instance where police have invoked Section 53ZRG of the Anti-Money Laundering and Counter-Terrorist Financing Ordinance (Cap. 615) since its enactment on April 1, 2023. This legislation makes it an offense for any person to make a fraudulent or reckless misrepresentation to induce another to enter into a virtual asset agreement, carrying a maximum penalty of a HKD 1 million fine and up to seven years imprisonment upon conviction.

In an update provided by the Hong Kong Security Bureau in April, it was reported that as of the end of February this year, the police had received 2,636 JPEX-related reports, with the total sum involved estimated at approximately HKD 1.616 billion. Of these complainants, 666 had withdrawn their complaints, while 659 remained unreachable despite multiple police attempts. Statements were successfully taken from the remaining 1,311 individuals. The total value of frozen assets, encompassing around HKD 14.5 million in cryptocurrencies, alongside properties, luxury vehicles, bank balances, and cash, stands at approximately HKD 228 million.

When pressed on the avenues available for victims to recover their assets, Chief Superintendent Wong Chun-yu indicated that civil litigation might be necessary and advised victims to seek appropriate legal counsel. He further stated that more prosecutions could follow and appealed to victims who had previously declined to pursue the case or who could not be contacted to reconsider providing information to the police.

International Manhunt Continues: Red Notices Issued for Key Fugitives

The Hong Kong police confirmed their ongoing collaboration with INTERPOL, having issued Red Notices for two alleged masterminds and one key member of the syndicate who remain at large. Records indicate that Red Notices were issued as early as July 2024 for “Coin Young Master” Wong Ching-kit and his former assistant, Mok Tsun-ting. While the list provided at today’s press conference did not explicitly mention Wong Ching-kit, his former assistant, Mok Tsun-ting, was noted. A post-conference check by BlockTempo on the INTERPOL website confirmed that the Red Notice for “Coin Young Master” Wong Ching-kit remains active and searchable.

Related Content:

• Is it a boxing match or an exposé? Social media speculates “Fight Night” revealed JPEX misappropriated client assets
• [Exclusive] JPEX user recounts trusting the wrong people, reveals how KOLs and partners propped up the suspected pyramid scheme
• Explainer: Suspension of withdrawals, asset transfers? The full story of the “JPEX incident”