A crypto exchange in Hong Kong, JPEX, has been accused of a US$166 million fraud. Eleven people, including influencers, were arrested. The exchange is accused of being involved in a money laundering scheme and disappearing with investor funds. The news on the subject in Sözcü is as follows:

While the confidence of investors has been shaken by the fraud incidents in the crypto world in recent years, a crypto exchange named JPEX in Hong Kong has also been associated with fraud.

In the latest development, blockchain analytics company Bitrace reported that fraudulent activity was suspected at the Hong Kong exchange JPEX. The exchange has faced accusations of involvement in a money laundering scheme through the crypto asset Tether over the past 20 months.


Several people were also arrested after the exchange was linked to a scam called 'rugpull' (project developers disappearing with investor funds).

Hong Kong police had previously received thousands of complaints about JPEX related transactions totaling around 1.3 billion Hong Kong dollars (US$166 million).


Footage broadcast on local television shows police escorting Joseph Lam, one of the arrested influencers, to a car after a raid on his home.

In his posts, Lam was telling his followers how Bitcoin profits could help them buy houses and increase their social influence. YouTuber Chan Yee, who has 200,000 subscribers, was also arrested.


Police said most of the complainants were inexperienced investors who were promised high returns. In addition to listening to influencers, JPEX also advertised widely on Hong Kong's MTR train system with giant billboards.

11 people, including popular influencers, were arrested this week after 2,000 people complained. The case is seen as one of the biggest fraud cases in Hong Kong.


Meanwhile, Hong Kong is testing new financial regulations as it positions itself as a global hub for virtual assets.

Last week, the Hong Kong Securities and Futures Commission (SFC) announced that Dubai-based JPEX was operating without a virtual asset trading license. The platform said it had tried to comply with the law, which came into force in June this year, but its efforts were rejected by the Commission.