• Hong Kong charged 16 people, including Joseph Lam, in the HK$1.6 Billion JPEX crypto fraud case.
• Police seized HK$228M in assets as Interpol hunts three key JPEX suspects abroad.
• The case marks Hong Kong’s first JPEX prosecution under anti-money laundering laws.

In connection with the JPEX crypto fraud totalling HK$1.6 billion, 16 individuals have been charged with fraud. Among the group, 12 were men while 4 were women, which included former barrister Joseph Lam Chok. Police stated the JPEX fraud was one of the largest financial frauds in Hong Kong, with victims losing millions in digital assets. 

According to the authorities, the defendants were members of an organised system that, using the JPEX trading platform, solicited investments in virtual assets without the required licences. 

Police Seize Millions in Assets as JPEX Fraud Investigation Expands

Out of the 16, six were classified as primary or pivotal members while seven were classified as promoters and the rest as OTC (over-the-counter trading). Investigators claim that the accused collaborative group sketched out plans to defraud the investors and then, afterwards, shifted and laundered the funds.

The police first investigated the system in September 2023, as the fraud victims were reporting to authorities. By February 2025, 2636 victims had been identified, and their reported losses in value totaled HK$1.616 billion, the JPEX operation loss. In the virtual asset level, the JPEX operation loss was one of the worst losses in the region.

Also Read: Hong Kong Lets Crypto Exchanges Access Global Markets: Report

Since the investigation started, the Commercial Crime Bureau claims to have made 80 arrests. Officers have also frozen assets worth over HK$228 million, which includes cryptocurrency worth HK$14.5 million, luxury cars, real estate, cash, and bank accounts.

Interpol Hunts JPEX Ringleaders Amid First Charges

Chief Superintendent Ernest Wong Chun-yue said Interpol has been asked to track down three key targets. It is suspected that the two leaders and one core member left Hong Kong before the investigation became more serious. Wong said that the case is a complex one because it claims that social media marketing was used to gain the trust of the investors.

Senior Superintendent Fanny Kung Hing-fun admitted that during the early phases of the investigation, a number of suspects also managed to escape. Interpol has been requested to issue red notices for their detention. Information from the Security Bureau indicates that 666 victims have decided not to pursue legal action, 659 have become unlocatable, and 1,311 have provided full testimony to the police.

The prosecution is the first JPEX case charged under the Anti-Money Laundering and Counter-Terrorist Financing Ordinance. The officials claim that the JPEX Ordinance does give them additional powers to prosecute complex financial crimes involving virtual assets. Each conviction is capped at a fine of 1 million HKD and a maximum of seven years imprisonment.

The money laundering charges that have been levied on all 16 defendants is the same for Lam and promoter Chan Wing-yee. On Thursday morning, the group is supposed to show up at the Eastern Court. Prosecutors will likely show how the group’s activities tie to the JPEX trading platform and its associated promotions.

One connected to the case is the Taiwanese entertainer Nine Chen (Chen Lingjiu). In Taiwan, Chen is said to have received 320,000 Tether tokens (roughly 10 million NT) from a Hong Kong businessman for the purpose of advertising JPEX.

The Securities and Futures Commission said the JPEX-linked outlets and promoters misled investors. They fraudulently said the exchange was applying for regulatory approval when there was no such application.

Regulatory data indicate that 11 exchanges—namely, HashKey, OSL, HKVAX, Bullish, BGE, and HKBitEx—have been greenlit for retail trading in Hong Kong. 

Source: Hong Kong SFC

Big players in the field, Bybit and Crypto.com, are still waiting for feedback on their submissions. The prosecution of JPEX suggests an increasing focus on enforcement concerning fraud and unlicensed activities in the cryptocurrency sector in Hong Kong.

Also Read: Hong Kong SFC Raises Alarm on Crypto Treasury Firms Amid Rising Investor Risk