JPEX Scandal: Hong Kong Authorities Join Forces to Combat Crypto Fraud

Hong Kong Forces Unite

Following the crackdown on crypto exchange JPEX, Hong Kong's police and the Securities and Futures Commission (SFC) have joined hands to form a dedicated working group, in a bid to curb illegal crypto-related activities.

Per the statement, the newly formed working group, established after a high-level meeting on September 28, includes officers from the Commercial Crime Bureau, Cyber Security and Technology Crime Bureau, and Financial Intelligence and Investigations Bureau of the Hong Kong Police, along with personnel from the SFC's Enforcement Division and Intermediaries Division. 

Eve Chung, the assistant commissioner of police, emphasized the importance of this collaboration, stating, "The new working group is instrumental to fast-tracking vital intelligence exchange and joint collaboration in responses to the challenges arising from VATPs, so as to better protect the general public of Hong Kong."

This initiative comes on the heels of a crackdown on JPEX, which resulted in the arrest of at least 20 individuals linked to the case. Last week, Hong Kong and Macau authorities arrested four individuals who were closely tied to the scandal. The SFC had previously warned about false statements made by crypto influencers and JPEX regarding a virtual asset trading license in Hong Kong, leading to increased scrutiny and disclosures of crypto license applicants.