JPEX crypto scam: (East Week) HK police issue global Red Notices for trio of fugitive masterminds

Hong Kong's largest-ever fraud case involving the JPEX virtual asset platform has ensnared over 2,700 victims and HK$1.6 billion in losses, with police securing 16 prosecutions and issuing Interpol red notices for three alleged ringleaders—a 30-year-old Australian student, his 28-year-old compatriot, and a 27-year-old accomplice—who investigators believe orchestrated the operation from afar.

Since launching its probe in September 2023, authorities have arrested 80 suspects amid a web of encrypted accounts, overseas entities, and tangled fund flows.

The breakthrough came last week when 15 defendants, including influencers like Joseph Lam Chok and Chan Yee, appeared in Eastern District Court on charges of fraudulently inducing virtual asset investments under a rarely invoked law, alongside money laundering and conspiracy counts.

One additional suspect faces prior laundering charges, with the case shifting to District Court for a January hearing. More indictments loom as the net widens.

Though no one has claimed ownership of JPEX, tracing efforts point to Cheung Chun-ching, 30, as the "super brain" who studied in Australia, recruiting fellow student Kwok Ho-lun, 28, and 27-year-old Mok Tsun-ting to form a tight-knit "trading triangle."

The trio registered the firm in Australia as a front for global promotion, enlisting OTC traders and celebrities to lure investors with promises of low-risk, high returns.

They fled overseas at the scandal's eruption in 2023, abandoning associates while the group raked in funds through aggressive ads, social media blitzes, and celebrity endorsements.

The timeline traces JPEX's rise and fall: Founded in 2020 with flashy billboards and star-studded pitches, it drew scrutiny when the Securities and Futures Commission blacklisted affiliates in July 2022.

By September 13, 2023, regulators slammed its six dubious practices, halting promotions; JPEX hiked withdrawal fees the next day, triggering mass panic.

Police raids followed on September 18, freezing assets and sparking investor lawsuits.

In June 2024, a court sided with two claimants, awarding nearly HK$185,000 in Tether cryptocurrency against the absent firm.

Interpol's alerts, dispatched to 196 member countries, detail the fugitives' identities and offenses, urging worldwide hunts. Among the web's notorious figures is "Coin Young Master" Wong Ching-kit—real name Kwan Tsz-kit—who rose in 2018 as a self-proclaimed "crypto madman" and "Hong Kong blockchain king," flaunting supercars and windfall wealth.

His fame exploded in the "Sham Shui Po money drop" stunt, where he scattered cash from a rooftop, drawing crowds and a 10-day suspended sentence for public nuisance.

Early 2019 brought fraud claims over HK$3 million in mining machine scams, leading to conspiracy arrests and asset freezes.

By last year, red notices chased him for fraud and theft, with his JPEX aides emerging as key lieutenants in the firm's deceptive machine.