It has been reported that as of Monday night, the Hong Kong Police received complaints from 1,641 individuals who claimed to have lost 1.19 billion Hong Kong dollars (152 million dollars) in the JPEX cryptocurrency exchange.
More Arrests Possible
As the investigation into this incident continues, the police have arrested 8 individuals in connection with allegations of fraud involving the JPEX exchange and have warned that there could be more arrests.
Tighter Cryptocurrency Regulations in Hong Kong
Additionally, the allegations of JPEX fraud have raised the need for stricter cryptocurrency regulations in Hong Kong. In this context, the Hong Kong police are intensifying their investigations into the cryptocurrency exchange JPEX in the city and are also considering the possibility of seizing alleged proceeds of crime.
During the operation conducted on Monday, the police conducted raids at 20 different locations in the city. As a result of this operation, approximately 8 million Hong Kong dollars in cash, jewelry, computers, and phones were seized. Moreover, it is planned to seize more than 60 million Hong Kong dollars from alleged proceeds of crime.
JPEX Exchange Claims Unfair Treatment
JPEX, on the other hand, claims to have been constantly subjected to unfair treatment, especially after other cryptocurrency exchanges entered the Hong Kong market and launched major promotions.
However, JPEX has also announced that it has suspended some operations and increased withdrawal fees due to the ongoing liquidity crisis. It was previously announced that all trading platforms in Hong Kong that have not applied for a license or have not ceased their operations should terminate their operations. However, JPEX does not appear to have taken any steps in this direction yet.