Hong Kong Charges 16 in $205 Million JPEX Crypto Fraud Probe

Hong Kong authorities have charged 16 individuals, including influencer Joseph Lam, in connection with the $205 million JPEX cryptocurrency fraud investigation. The suspects face charges of fraud, conspiracy to defraud, and money laundering. More than 2,700 investors fell victim to the scheme operated through JPEX’s network of social media promoters and retail crypto shops that misled users into depositing funds into the unlicensed platform. Lam had been arrested in September 2023 after promoting JPEX, shortly after warnings from the Securities and Futures Commission about its unlicensed status. Investigators have made over 80 arrests and issued Interpol red notices for three alleged ringleaders who remain at large. The JPEX case reflects significant concerns about fraudulent activities in the cryptocurrency space and highlights the need for better regulation and investor protection. Legal experts emphasize the importance of accountability for promoters who misrepresented the safety of the platform despite regulatory warnings.

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