Hong Kong Authorities Charge 16 in Major JPEX Crypto Fraud Case Exceeding $200 Million

Hong Kong authorities have filed charges against 16 individuals—comprising 12 men and 4 women, including former barrister Joseph Lam Chok—related to the JPEX crypto fraud scandal, which amounts to HK$1.6 billion (approximately US$205.8 million).

Key Takeaways

Hong Kong authorities charge 16 individuals in a $205.8 million crypto fraud case linked to JPEX.
The investigation, launched in September 2023, has reported losses of about HK$1.616 billion.
Six main suspects and seven promoters are accused of luring investors into virtual asset investments.
80 arrests have been made, with a total of HK$228 million in assets frozen.
The JPEX case is notable for being prosecuted under the Anti-Money Laundering and Counter-Terrorist Financing Ordinance.

Hong Kong Authorities Charge 16 in Massive JPEX Crypto Fraud Case Worth Over $200 Million

The police uncovered this case in September 2023, making it one of the largest financial fraud investigations in Hong Kong's history, with around HK$1.616 billion lost by 2,636 complainants as reported by February.

A November 7 article from the South China Morning Post highlighted Chief Superintendent Ernest Wong Chun-yue of the commercial crime bureau, noting that Interpol is actively pursuing two key suspects and one main member of the fraud operation.

Main Content

JPEX Fraud Leaders Pursued by Interpol

Local law enforcement has charged six primary members of the operation, alongside seven promoters and other associates, who allegedly conspired to lure Hong Kong residents into investing in virtual assets, only to misappropriate and launder their funds.

Reports indicate that police have executed 80 arrests and frozen assets worth approximately HK$228 million, which includes HK$14.5 million in cryptocurrency as well as real estate, luxury vehicles, bank funds, and cash.

Security Bureau data reveals that 666 victims have opted not to pursue further action, 659 cannot be contacted, while 1,311 have given formal statements.

Senior Superintendent Fanny Kung Hing-fun pointed out that several suspects managed to flee before the arrests commenced, leading the police to issue Interpol Red Notices for three fugitives.

This case marks the debut of charges related to JPEX under the Anti-Money Laundering and Counter-Terrorist Financing Ordinance. The defendants are charged with fraudulently or recklessly persuading others to invest in virtual assets, with potential penalties reaching up to HK$1 million in fines and seven years in prison.

All 16 defendants, including Lam and fellow promoter Chan Wing-yee, now face charges of money laundering and will appear in Eastern Court on Thursday morning.

In a notable connection, Taiwanese singer Nine Chen (Chen Lingjiu) has been implicated in the JPEX scandal. The Bureau of Investigation in Taiwan claims Chen received around 320,000 Tether tokens (valued at approximately NT$10 million) from a Hong Kong businessman to promote JPEX in Taiwan.

SFC Unveils Misleading Claims by JPEX Promoters

The Securities and Futures Commission (SFC) recently revealed that JPEX-affiliated cash-for-crypto outlets and social media promoters falsely claimed that the platform was in pursuit of regulatory approval, despite no application existing.

Chief Executive John Lee Ka-chiu endorsed the commission's strategy of providing "transparent and clear" information on crypto companies seeking licenses and those already approved. He emphasized that “This clear information will assist investors to make decisions regarding potential investments.”

Additionally, Security Chief Tang stated that authorities are enhancing cooperation with the commission to prevent fraud, similar to the JPEX case, by improving knowledge on safe trading practices.

According to SFC data, approximately 11 platforms—including HashKey, OSL, HKVAX, Bullish, BGE, and HKBitEx—have successfully obtained licenses to operate retail cryptocurrency trading in Hong Kong.

Hong Kong Authorities Charge 16 in Massive JPEX Crypto Fraud Case Worth Over $200 Million

Major exchanges like Bybit and Crypto.com have submitted licensing applications in June 2025 and February 2024, respectively, and are currently awaiting outcomes.

Hong Kong Strengthens Regulations on Crypto Licensing

In August, Cryptonews reported that the SFC implemented stricter custody requirements for virtual asset platforms following significant global security breaches that led to over $3 billion in crypto losses during the first half of 2025.

These new guidelines set baseline standards for wallet systems, transaction verification, and access protocols, as regulators guide the industry towards sophisticated custody solutions through the "ASPIRe" framework.

In September, the Hong Kong Monetary Authority (HKMA) refuted claims circulating on social media regarding the launch of an offshore yuan-backed stablecoin in the city. The HKMA clarified that the Stablecoin Ordinance, which took effect on August 1, mandates that any entity wishing to issue stablecoins or market such services in Hong Kong must secure regulatory approval.