Two more were arrested concerning the allegations of fraud at JPEX, an unlicensed cryptocurrency exchange, bringing the total arrestees for the case to eight, with police receiving more than 1,600 complaints against the platform.

The eight arrested - aged 22 to 52 - were the shopkeepers of the over-the-counter virtual asset money changers along with the responsible persons and staff of some cryptocurrency companies, the police said on Tuesday. All of them were arrested for conspiracy to defraud.

Social media influencers Joseph Lam Chok and Chan Yee, who have been actively promoting JPEX, were among the arrested.

Police have also received 1,641 complaints on JPEX as of last night, with the money involved amounting to HK$1.19 billion.

Officers have searched over 20 premises and over-the-counter shops during the operation, seizing HK$8 million of cash, luxury handbags, jewellery, and freezing deposits totaling HK$15 million and three properties worth HK$44 million.

Meanwhile, Chief Executive John Lee Ka-chiu said Tuesday that the government would tighten regulation of digital assets trading and step up efforts to educate investors after the controversy scandal erupted.

“We will be doing more public education for investors to know the risks, how investments operate on such platforms, and how our licensing regime will ensure that what platforms are sufficiently regulated for investors to place their investments on,” Lee said.

He added that the Securities and Futures Commission (SFC) will closely monitor the situation and ensure investors are sufficiently protected.

SFC announced last week that JPEX was unlicensed and did not have the authority to operate its cryptocurrency trading platform in the city. It also asked influencers to stop related promotions.

JPEX’s troubles also unleashed criticisms against the key regulator, as it was discovered that SFC had previously placed JPEX on the suspect list in July last year but delayed for approximately 14 months before the authorities took action.

Lawmakers have urged the government to do more to protect small investors through education or publication of information.

(Updated at 5.03 pm)

Eight arrests linked to JPEX scandal involving HK$1.2 billion of virtual assets