Hong Kong Strikes Back: 16 Charged in $205 Million JPEX Crypto Scandal — Interpol Issues Red Notices

In what authorities are calling Hong Kong’s largest financial fraud case in history, police have charged 16 individuals tied to the notorious JPEX crypto exchange scam, which allegedly defrauded over $205 million from 2,700 investors. The case has now expanded across borders, drawing in Interpol and linking to Cambodia’s Prince Group, whose related assets worth $354 million have been frozen by Hong Kong and Taiwanese authorities.

The Biggest Crypto Fraud Case in Hong Kong’s History According to Chief Superintendent Ernest Wong Chun-yue of the Commercial Crime Bureau, the suspects face charges of conspiracy to defraud, fraudulent inducement to invest, and money laundering. Among the accused is Joseph Lam, a former lawyer turned social media influencer, and several over-the-counter (OTC) operators accused of helping JPEX move investor funds. So far, police have arrested 80 people since the investigation began in September 2023, including 14 key syndicate members, with HK$228 million (about $29 million) already seized.

Interpol Pursues the “Masterminds” Interpol has now issued red notices — international arrest alerts — for three fugitives believed to be the central figures behind the JPEX operation:

🔸 Mok Tsun-ting

🔸 Cheung Chon-cheong

🔸 Kwok Ho-lun “This is one of the most complex cases we’ve ever seen,” said Wong. “The number of victims, cross-border transfers, and volume of digital evidence make it an extraordinary challenge.” The 16 charged suspects are expected to appear before Eastern Court on Thursday, while international agencies continue tracking down the missing executives.

How the JPEX Collapse Unfolded The scandal erupted after Hong Kong’s Securities and Futures Commission (SFC) revealed that JPEX was operating without a license.

Soon after, investors reported being unable to withdraw their funds, while others noticed altered or reduced balances on their accounts. In a statement, JPEX claimed it was “negotiating with third-party market makers to resolve liquidity issues”, but later accused “malicious actors” of freezing its assets. Police have since seized three properties worth $5.6 million and frozen $1 million in bank accounts, while JPEX continues to blame what it called “unfair treatment by local institutions.”

The Prince Group Connection: $354 Million in Assets Frozen In a parallel investigation, police in Hong Kong and Taiwan froze $354 million linked to Cambodia’s Prince Group, allegedly tied to large-scale money laundering operations. The assets include cash, stocks, and digital funds, believed to be proceeds of criminal activity. The group’s alleged head, Chen Zhi, has previously been accused by U.S. and U.K. authorities of running fraud centers using forced labor and laundering billions in stolen funds worldwide.

The U.S. Department of Justice reportedly seized $15 billion in Bitcoin from Chen and placed sanctions on 146 individuals and entities connected to his network.

Hong Kong’s Crypto Policy Takes a Surprising Turn Despite the ongoing crackdown, Hong Kong regulators are taking a measured approach to crypto oversight.

Officials recently proposed lower capital requirements for banks holding certain permissionless blockchain assets, provided issuers demonstrate robust risk management systems. The move signals that Hong Kong — while aggressively targeting fraud — still aims to position itself as a regulated hub for digital finance, balancing investor protection with innovation.

Summary 🔹 16 charged in connection with JPEX’s $205M crypto scam

🔹 Interpol red notices issued for three fugitive masterminds

🔹 $354M in assets tied to Cambodia’s Prince Group frozen

🔹 Hong Kong pushes ahead with crypto-friendly regulations despite scandals Hong Kong’s message to the crypto world is clear: fraud will be punished, but innovation will not be stopped.

#HongKong , #CryptoFraud , #blockchain , #CryptoNews , #DigitalAssets

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