Arrests of 72 Individuals in Hong Kong JPEX Cryptocurrency Fraud with HK$228 Million in Assets Seized to Date

In a legislative briefing on Thursday, Police Commissioner Raymond Siu Chak-yee informed lawmakers about new developments in a major investigation, revealing that arrests have surged to 72 and approximately HK$228 million is now under restraint.

“As of the present, the police have been notified of 2,636 instances related to this investigation, encompassing an aggregate of around HK$1.6 billion,” he reported.

Among the individuals apprehended are online influencers who promoted the trading platform in question and established their own brick-and-mortar exchange offices. This group includes Chan Wing-yee, Joseph Lam Chok, and Sheena Leung.

Answering legislator Johnny Ng Kit-chong’s inquiry, Siu disclosed that last year, the police registered 6,330 investment fraud incidents, which included both offline and online schemes, with losses surpassing HK$5.93 billion. From these, 2,342 cases were cryptocurrency-related, with losses amounting to about HK$3.16 billion.

Additionally, the conference addressed the government’s suggested revisions to the Fire Safety (Buildings) Ordinance, which have been scrutinized by the public subsequent to the fatal New Lucky House fire in Yau Ma Tei.

The proposed changes aim to elevate the maximum fine for failing to comply with fire safety orders from HK$50,000 to HK$200,000.

The revisions also consider additional daily penalties for ongoing offenses, ranging from HK$5,000 to HK$20,000.

Hong Kong JPEX cryptocurrency scandal exposes regulatory ‘loopholes’: victims

Security minister Chris Tang Ping-keung announced that, in response to the recent blaze, the government plans to expedite the amendment process by presenting the changes in the second quarter of the year as opposed to the originally planned fourth quarter.

The conflagration that engulfed the decades-old mixed-use building in Yau Ma Tei, consisting of guest houses and partitioned apartments, resulted in five fatalities and 43 injuries last Wednesday.

The torched structure was among 9,578 buildings that had not adhered to fire safety notices as of last December and had also neglected a compulsory building inspection order for six years.

During Thursday’s session, legislators questioned whether the sanction for contravening the Fire Safety (Buildings) Ordinance could include incarceration.

Alarming Hong Kong fire leads to increased fire safety scrutiny for ‘high-risk’ buildings

However, Tang remarked that recommending imprisonment for noncompliance would be challenging because fire safety is often a collective obligation, and it is difficult to pin down personal liability.

“Issues such as a non-functional fireproof door, absence of a fire hose, or obstructed passageways make it particularly difficult to assign individual accountability,” he explained. “Consequently, levying fines is more feasible. If no specific person can be held accountable, then who is sent to prison? That is the challenge we face.”

The security minister also noted that buildings failing to meet fire safety standards doesn’t automatically imply they are unsafe for occupants, but that they simply do not conform to current criteria.