Hong Kong Authorities Charge 16 Entities For JPEX Crypto Scam

Authorities in Hong Kong have indicted 16 people believed to be linked to the JPEX cryptocurrency scam, which led to the loss of $205.8 million. Apparently, these entities, which include a former lawyer and social media influencer, Joseph Lam, have defrauded more than 2,700 investors

JPEX Scam Affects 2,700 Investors

According to Hong Kong police, the largest alleged financial fraud in the country’s history is a JPEX cryptocurrency scam that affected 2,700 investors. For context, the exchange allegedly operated as a crypto trading platform without a license. During this time, it misled investors into believing that it is a legitimate exchange

However, Hong Kong authorities discovered s discrepancies in its operations and opened a case in September 2023. Since that time, around 80 people have been arrested and HK$228 million seized from them. More recently, the authorities charged 16 people for their involvement in the matter

Court Hearing Scheduled for Nov. 6

The South China Morning Post noted that the charges against them include conspiracy to defraud, fraudulently inducing investment, and money laundering

They are scheduled to go before the Eastern Court by November 6. Of the 16 suspects, six are believed to be core members of JPEX’s operations. Lam and six others were categorized as influencers or believed to be involved in Over-the-Counter (OTC) crypto trading

For the Hong Kong authorities, this is their first time applying the Anti-Money Laundering (AML) and Counter-Terrorist Financing Ordinance to a crypto-related case. Following this case, Hong Kong leader John Lee has made a public call for “more public education for investors to know the risks.” He has also asked for a licensing regime in the territory.

Hong Kong Push to Become Global Crypto Hub

This move underscores Hong Kong’s dedication to becoming a major crypto hub. Back in June, the authorities rolled out its digital asset policy blueprint dubbed “LEAP”. By taking this step, it placed a strong emphasis on stablecoin oversight and the tokenization of real-world assets (RWAs).

LEAP focuses on Legal clarity, Ecosystem development, Application of real-world use cases, and Promotion of talent. A few dats ago, the Hong Kong Monetary Authority (HKMA) reiterated the ambitious plan to make the region a global hub for tokenization and financial innovation. The Fintech 2030 strategy outlines a roadmap to strengthen the city’s fintech ecosystem over the next five years.

The post Hong Kong Authorities Charge 16 Entities For JPEX Crypto Scam appeared first on TheCoinrise.com.