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HomePolicyJPEX claims reach HK$1.2 billion in Hong Kong’s biggest-ever fraud case

JPEX claims reach HK$1.2 billion in Hong Kong’s biggest-ever fraud case

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JPEX snares 1,641 investors with HK$1.2 billion of funds in Hong Kong’s largest fraud case in history

Police received complaints from 1,641 investors as of Monday evening, involving nearly HK$1.2 billion in assetsEight people have been arrested in connection with the investigations into alleged fraud by JPEXBlockchainXinmei ShenPublished: 5:37pm, 19 Sep, 2023Why you can trust SCMP

The financial toll in Hong Kong’s cryptocurrency scandal has risen to HK$1.2 billion (US$154 million) involving more than 1,600 investors, making it the single largest financial fraud case in the city’s history and exposing risks faced by local retail investors amid a government push to transform the global financial centre into a virtual asset hub.

Police received complaints from 1,641 investors as of 10.30pm on Monday, involving HK$1.19 billion in assets, including HK$40 million from the biggest victim, the Hong Kong commercial crime bureau’s acting chief inspector Mak Wai-kwong said at a joint press conference with the city’s securities watchdog agency on Tuesday.

The case, which comes a little more than three months after a new virtual asset regulatory framework went into effect, is a major test of Hong Kong’s ability to balance investor protection with the city’s ambition to be fintech hub, and to keep up with the fast-growing world of cryptocurrency.

Police arrested eight people in connection with investigations into alleged fraud at JPEX, Mak said. Bank accounts with HK$15 million were frozen, and three properties valued at HK$44 million were seized, he said.

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