The Hong Kong police arrested eight more people on Thursday for their involvement in the JPEX scandal. This brings the total number of arrested people in connection with the scam to 36.
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The police said 2,595 people reported losing money on the JPEX cryptocurrency exchange. The total amount stolen in this supposed scam is 1. 6 billion yuan equals $213 million. At first, it was thought that fraud was about 154 million dollars.
The SFC found out that JPEX from Dubai was trading cryptocurrencies in Hong Kong without a proper license.
Ongoing investigation of the JPEX scandal
The police said that everyone who was arrested has been let out of jail while they look into the case. They have to check in with the police from the end of this month to the end of December. Several people are being looked into for possible fraud, including those who are famous for their photos.
Last month, the police arrested and questioned Joseph Lam. He used to be a lawyer but now sells insurance. On Instagram, he calls himself Hong Kong’s “troll king. ” The police also took Chan Yee, who is a popular YouTuber with 200,000 fans, into custody.
The Hong Kong police told the news that they are still looking into the cryptocurrency exchange and more people might be arrested. Hong Kong government makes rules stricter for cryptocurrency.
As we mentioned before, the head of Hong Kong Customs and Excise, Louise Ho Pui-shan, wants to make sure the cryptocurrency industry is regulated better because of the increasing risks of money laundering, especially after the JPEX scandal.
The fallout from this big scam has made companies that help people trade cash for cryptocurrency (like gateways) think about how they are run. Swap money for digital money.
The central bank and securities regulator of Hong Kong have made stricter rules for cryptocurrencies because of the scandal.
The new rules say that only professional investors can use certain cryptocurrency services.
The Hong Kong Monetary Authority and the Securities and Futures Commission say that virtual asset products are too risky and complicated for regular investors.
