Number of alleged scam victims exceeds 2,000 as police arrest three more in JPEX probe

21-09-2023 10:42 HKT

Police said late on Wednesday that three more men have been arrested for suspected conspiracy to defraud in relation to the unlicensed cryptocurrency exchange JPEX, bringing the total tally to 11.

The cryptocurrency scandal now involved a financial toll of almost HK$1.3 billion with over 2,000 alleged victims.

According to sources, police have, at the request of the Securities and Futures Commission, asked telecommunications services providers in Hong Kong to block internet access to the JPEX website.

JPEX said in a statement that the platform will continue to operate as usual despite the “unreasonable blockage”, adding that users can log into the mobile application or operate on the web version using VPN applications.

Meanwhile, the Securities and Futures Commission issued a statement rejecting claims by JPEX that it had sought guidance from the regulator in the hope of complying with legal requirements, but had received no positive response.

The SFC said it had made enquiries about what it called JPEX's misrepresentations and unlicensed activities, but the platform had been uncooperative.

It said there hadn't been any communication between the SFC and JPEX on licensing-related matters.

"The SFC affirms that JPEX has never approached the SFC in respect of any potential licence application, and that no entity in the JPEX group is licensed by the SFC or has applied to the SFC for a licence to operate a virtual asset trading platform in Hong Kong. As such, there has been no communication between the SFC and JPEX on licensing-related matters," the statement says.

"Subsequent information obtained has led to suspicion of fraud and the SFC has referred the matter to the Police. As investigations are ongoing, the SFC cannot make any further comment," it added.

The watchdog said it was deeply regretted that JPEX has publicized confidential correspondence between the SFC’s Enforcement Division and the platform, in breach of the secrecy/confidentiality provisions of the Securities and Futures Ordinance and the Anti-Money Laundering and Counter-Terrorist Financing Ordinance.