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

Hong Kong authorities have filed charges against 16 people, 12 men and 4 women, including former barrister Joseph Lam Chok, in connection with the HK$1.6 billion (US$205.8 million) JPEX crypto fraud case.

Police first exposed the case in September 2023, making it one of the city’s largest financial fraud probes, with losses of approximately HK$1.616 billion reported by 2,636 complainants as of February.

A November 7 South China Morning Post report cited Chief Superintendent Ernest Wong Chun-yue of the commercial crime bureau saying Interpol is pursuing two ringleaders and one core member of the operation.

JPEX Crypto Fraud Leaders on Interpol’s Red Notice List

Local authorities have pressed charges against six principal members, seven promoters, and others who allegedly conspired to lure Hong Kong residents into virtual asset investments before stealing and laundering their money.

As per reports, 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 Bureau figures show 666 victims have declined to take further action, 659 remain unreachable, and 1,311 have given formal statements.

Senior Superintendent Fanny Kung Hing-fun noted that several suspects escaped before arrests began, prompting police to issue Interpol red notices for the three fugitives.

This prosecution is the first JPEX crypto fraud instance of charges filed under the Anti-Money Laundering and Counter-Terrorist Financing Ordinance

The six principal members, seven promoters, and OTC participants 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 Eastern Court on Thursday morning.

Moreso, Taiwanese singer Nine Chen (Chen Lingjiu) has been tied to the JPEX scandal.

Taiwan’s Bureau of Investigation claims Chen received 320,000 Tether tokens (roughly NT$10 million) from a Hong Kong businessman to promote JPEX in Taiwan.

SFC Exposes False License Claims by JPEX Promoters

Notably, the Securities and Futures Commission (SFC) disclosed that JPEX-affiliated cash-for-crypto outlets and social media promoters falsely claimed the platform was pursuing regulatory approval when no application existed.

Chief Executive John Lee Ka-chiu endorsed the commission’s approach of publishing “transparent and clear” details about crypto companies seeking licenses and those already approved.

Lee added that “This clear information will assist investors to make decisions as to what they should do when they consider making an investment.”

Security Chief Tang also announced that authorities are now collaborating with the commission to curb fraud like that of JPEX through enhanced education on safe trading practices.

Commission data shows roughly 11 platforms, including HashKey, OSL, HKVAX, Bullish, BGE, and HKBitEx, have secured licenses for retail cryptocurrency trading in Hong Kong.

Major exchanges Bybit and Crypto.com submitted applications in June 2025 and February 2024, respectively, both awaiting decisions.

Hong Kong Tightens Grip on Crypto Licensing

In August, Cryptonews reported the SFC introduced stringent custody requirements for virtual asset platforms after global security breaches caused over $3 billion in crypto losses in the first half of 2025.

The directive establishes baseline standards for wallet systems, transaction verification, and access protocols as regulators advance the industry toward sophisticated custody solutions through the “ASPIRe” framework.

In September, the Hong Kong Monetary Authority (HKMA) rejected social media claims that an offshore yuan-backed stablecoin 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.

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