Hong Kong authorities charged 16 people, including former lawyer and social media influencer Joseph Lam, in connection with the JPEX cryptocurrency scandal that allegedly defrauded more than 2,700 investors out of HK$1.6 billion ($205.8 million).
According to the police, the case is the largest alleged financial fraud in Hong Kong’s history. The charges include conspiracy to defraud, fraudulently soliciting investment and money laundering, the South China Morning Post reported.
Six of the accused are believed to be core members of JPEX’s operations. Seven others, including Lam, are influencers or involved in over-the-counter crypto trading.
Authorities also said Interpol issued red notices to three fugitives, Mok Tsun-ting, Cheung Chon-cheong and Kwok Ho-lun, who are believed to have played a central role in the scheme. A Red Notice is a request to locate and temporarily detain a person pending extradition.
JPEX allegedly operated an unlicensed crypto trading platform, misleading investors while presenting itself as a legitimate exchange. Since the case was opened in September 2023, 80 people have been arrested and HK$228 million seized.
It is the first time that Hong Kong authorities have applied the Anti-Money Laundering and Anti-Terrorist Financing Ordinance to a crypto-related case. The 16 accused are scheduled to appear in Eastern Court on Thursday.
The case prompted Hong Kong’s leader, John Lee, to call for “more public education for investors to know the risks” and for a licensing scheme in the territory.
