The leader of JPEX, Hong Kong’s largest crypto rug pull case, is suspected of having fled to Australia, prompting urgent action as its Australian company was deregistered. Hong Kong police have announced their intention to seek Interpol’s assistance in the fugitive hunt. Meanwhile, nearly 4,000 victims find themselves entangled in the scandal, with approximately US$178 million of funds at stake.
Suspects’ Roles in the Cryptocurrency Scheme
As the investigation unfolds, it becomes increasingly clear that the 11 suspects questioned by local police are unlikely to be the masterminds behind the massive financial fraud.
Authorities are now focusing on unraveling the extent of these suspects’ knowledge regarding the JPEX cryptocurrency platform operations before the allegations come to light.
Intriguingly, investigators are also digging into potential connections between some of the suspects and over-the-counter virtual asset money changers. To date, the police have received 2,265 complaints from victims, resulting in the arrest of 11 individuals on suspicion of conspiracy to defraud.
Among those taken into custody are Joseph Lam Chok, a former barrister turned insurance executive turned social media influencer at the age of 33, as well as YouTubers Chan Wing-yee, 36, and Chu Ka-fai, 31. Lam has distanced himself from JPEX during a press conference at his upscale Mid-Levels home, asserting that he is no longer involved in its operations.
Additionally, the corporate secretary of the JPEX Technical Support Company, Tsang Cho-shun, 22, and two other individuals associated with Web 3.0 Technical Support, Jason Chan Hiu-ho, 22, and Tang Lap-shun, 26, have also been detained.
Sources suggest that Kwok Ho-lun, the sole director of Web 3.0 Technical Support, is among those sought by the police, raising questions about his involvement in establishing the firm. Kwok is also the director of CoinLedge Limited and Crypto Wesearch Media Limited, with CoinLedge being a blockchain media company that previously promoted JPEX.
Further complicating matters, Wong Ho-pong, director of the Apestaurant Group, is connected to To The Moon Group and is linked to over-the-counter virtual asset money-changing services.
Notably, actor and singer Julian Cheung Chi-lam and Malaysian actress Jacqueline Ch’ng Se Min, previously featured in promotional videos for JPEX, were questioned but not arrested. Feng Shui master and TV host Clement Chan Ting-bong, who endorsed JPEX in the past, also faced questioning.
An Australian company registered as “JP-EX Crypto Asset Platform Pty Ltd” initiated voluntary deregistration with the Australian Securities and Investments Commission shortly after the first eight arrests were made in Hong Kong.
However, the investigation remains ongoing, with further arrests on the horizon, and Interpol’s involvement is anticipated as digital coin transfers linked to the platform are uncovered.
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