Seven more arrests have been made and yet another supercar was seized in connection to the alleged $204 million fraud scandal surrounding JPEX, which has prompted Hong Kong to tighten regulations for crypto exchanges.
JPEX was accused of operating as an unlicensed crypto exchange while facilitating “suspicious activities.” Losses from defrauded investors are estimated to exceed HK$1.6 billion (over $204 million).
On Thursday, the seven new arrests brought the tally to 27. In the afternoon, six were arrested including the CEO of over-the-counter (OTC) firm CryptoPARD and a former director from the firm. Reports say three of these arrests are employees of OTC firms while the sixth person is reportedly behind an accused fraud syndicate connected to JPEX.
That same evening, local media reported that a 31-year-old man known only as ‘Mok’ was also arrested. Sources say he is connected to JPEX, but that he didn’t work for an OTC firm. Police seized and towed his Lamborghini. His sudan is also said to be part of criminal proceeds.
Hong Kong police are accumulating quite a collection of seized supercars and luxury goods as arrests continue. Police seized two Porsches on Wednesday while garages filled with Rolls Royce, Mercedes, and Bentley cars made up 50 vehicles seized in August.
The JPEX arrests have prompted Hong Kong financial regulators to set up a task force in an attempt to monitor and crack down on any other crypto exchanges showing similar signs of fraudulent activity.
JPEX has denied all allegations made.