The virtual asset trading platform JPEX suspects conspiracy fraud as more individuals get arrested. The Hong Kong police announced yesterday (the 26th) that a total of 66 people have been arrested in the case so far.

Checking the data released by the police at the end of last month, approximately 30 more individuals were arrested in just over a month. Regarding victims, the police received reports from 24 individuals, totaling 2,623 reported cases, involving an estimated amount of around HK$1.6 billion.

The police stated that all arrested individuals have been granted bail pending further investigation. They are required to report in late December to late January next year. The case is still under investigation, and the possibility of more arrests is not ruled out.

Criminal investigation personnel are following up and will continue to contact involved individuals to provide relevant information for the investigation.

Inadequate Regulation! JPEX Clone?

Amid the ongoing investigation into JPEX, another crypto exchange scam has surfaced in Hong Kong recently. The Securities and Futures Commission listed another virtual asset platform, Hounax, in the list of suspicious virtual asset trading platforms on the 1st of this month.

The police, two days ago, publicly urged citizens to be vigilant, mentioning that as of that day, they received 88 reports involving 131 victims, with losses totaling nearly HK$120 million.

(Source: Securities and Futures Commission)

It is worth noting that Mr. Chan Wai Kei, Rick of the SP of the Commercial Crime Bureau, has issued a recent alert. The website for HOUNAX is still operational, and its mobile app is still available for download.

He mentioned that no suspects have been arrested in this case yet, and there doesn't appear to be an immediate link between this case and the previous JPEX fraud.

The implicated company claims to be based in Singapore, and the police haven't ruled out potential future collaborations with overseas agencies for the investigation.

No Improvement!

After the JPEX incident, it is evident that there are still numerous loopholes in Hong Kong's regulations. The Hounax incident clearly exposes this major loophole. As the Securities and Futures Commission indicated that current regulations only oversee licenced virtual asset trading platforms and do not currently have the authority to regulate unlicenced platforms.