A Hong Kong man accused of playing a role in the unfolding JPEX crypto scandal has apparently been caught destroying potential evidence using paper shredders and a bathtub full of bleach.
As reported by the South China Morning Post (SCMP), the man, known only as ‘Tang,’ was arrested along with three other suspects who authorities say are “relatively close to the core” of the troubled Dubai-based crypto platform.
The arrests bring the total number of people apprehended in connection with JPEX to 19 with police reportedly still tracking a number of people accused of money laundering and fraud.
JPEX was accused this month by Hong Kong’s Securities and Futures Commission of having “suspicious features” while also operating without a license. Access to JPEX for residents in Hong Kong was blocked last week and more than 2,400 complaints have been made to the police regarding the company.
Alongside the arrests, police also seized cash and valuables worth HK$6.5 million ($830,000). An additional HK$8.2 million ($1.05 million) of funds held in a casino have also been frozen.
Hong Kong assistant police commissioner, Chung Wing-man, said, “We believe our investigation has reached figures that are close to the core, but we still need to find out whether the mastermind is an individual or a group.”
JPEX USDT outflows
Blockchain analytics firm Bitrace discovered a JPEX-associated wallet containing USDT and various other tokens labeled as “contaminated.” The wallet is reportedly connected to money laundering, gambling, and the black market. Bitrace also noted that 7.21 billion in USDT (worth $7.2 billion) was moved out of JPEX wallets this month.
“The scale of the syndicate is very big, there’s still massive investigation work that needs to be done,” according to the commissioner. Losses from the JPEX scandal are expected to exceed HK$1.5 billion (over $191 million).