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Crypto Journalist
Anas Hassan
Crypto Journalist
Anas Hassan
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Hong Kong authorities have filed charges against 16 people, 12 men and 4 women, including former lawyer Joseph Lam Chok, in connection with the HK$1.6 billion ($205.8 million) JPEX crypto fraud case.
First the police exposed the case in September 2023, making it one of the city’s biggest financial fraud probes, with losses of around HK$1.616 billion reported by 2,636 whistleblowers in February.
A November 7 South China Morning Post report Cited Chief Superintendent Ernest Wong Chun-yue of the commercial crime office as saying that Interpol is pursuing two leaders and a core member of the operation.
JPEX Crypto Fraud Leaders on Interpol’s Red List
Local authorities charged six main members, seven promoters, and others who allegedly conspired to lure Hong Kong residents into investing in virtual assets before stealing and laundering their money.
According to reports, the police have now made 80 arrests and frozen assets totaling HK$228 million, including HK$14.5 million in cryptocurrency, plus real estate, luxury cars, bank funds and cash.
Security Office Figures shows that 666 victims refused to take further action, 659 remained unreachable, and 1,311 gave formal statements.
Senior Superintendent Fanny Kung Hing-fun noted that several suspects escaped before the arrests began, prompting police to issue Interpol red notices for the three fugitives.
This prosecution is the first instance of JPEX crypto fraud charges filed under the Anti-money laundering and the Terrorism Financing Ordinance
The six main members, seven promoters, and the participants of the OTC face accusations of fraudulently or recklessly convincing others to invest in virtual assets.
Conviction carries up to HK$1 million in fines and seven years in prison.
All 16 defendants now face money laundering charges, including Lam and promoter Chan Wing-yee, and the group will appear in the Eastern District Court on Thursday morning.
Moreso, the Taiwanese singer Nine Chen (Chen Lingjiu) was linked to the JPEX scandal.
Taiwan’s Bureau of Investigation says Chen received 320,000 Tether tokens (about NT$10 million) from a Hong Kong businessman to promote JPEX in Taiwan.
SFC exposes false license claims by JPEX promoters
In particular, the Securities and Futures Commission (SFC) disclosed that JPEX-affiliated cash-for-crypto outlets and social media promoters falsely claimed the platform was seeking regulatory approval when no such application existed.
Chief Executive John Lee Ka-chiu approved the commission’s approach of publishing “transparent and clear” details about crypto companies seeking licenses and those already approved.
Lee added this “This clear information will help investors make decisions about what they should do when they think about making an investment.”
Security Chief Tang also announced that authorities will now collaborate with the commission to curb fraud like that of JPEX through enhanced education on safe business practices.
Commission data shows about 11 platforms, including HashKey, OSL, HKVAX, Bullish, BGE, and HKBitEx, have secured licenses for cryptocurrency trading in Hong Kong.
The major exchanges Bybit and Crypto.com applications submitted in June 2025 and February 2024, respectively, both pending decisions.
Hong Kong Tightens Grip on Crypto License
August, Cryptonews reported the SFC introduced strict custody requirements for virtual asset platforms after global security breaches caused more than $3 billion in crypto losses in the first half of 2025.
U directive sets basic standards for wallet systems, transaction verification and access protocols as regulators move the industry towards sophisticated custody solutions through the “ASPIRe” framework.
In September, the Hong Kong Monetary Authority (HKMA) rejected social media said an offshore stablecoin backed by yuan had launched in the city.
The HKMA clarified that the Stablecoin Ordinance, effective August 1, requires any entity issuing stablecoins in Hong Kong or marketing such services to obtain regulatory authorization.
