Hong Kong police arrest 2 men in connection with JPEX crypto scandal after they are returned by Macau authorities

Hong Kong police on Saturday arrested two men in connection with the scandal over cryptocurrency platform JPEX after Macau authorities returned them to the city.

The force revealed on Friday that two Hongkongers, both 29, had been detained in neighbouring Macau with HK$6.5 million (US$830,390) in cash and valuables seized. About HK$8.2 million was also frozen in their casino accounts.

Macau police said the pair owned over-the-counter cryptocurrency changer shops.

Hong Kong, Macau police arrest 4 ‘relatively close to core’ of JPEX crypto scandal

While Hong Kong and Macau do not have official extradition agreements, Assistant Police Commissioner Chung Wing-man said it was up to courts in the casino hub to decide what to do with the suspects.

The pair arrived handcuffed and with their faces covered at the Hong Kong-Macau Ferry Terminal in Sheung Wan at around 6pm on Saturday, and were hauled into vans by officers before being driven away.

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Police said on Friday that two other men, both 28, had been detained in connection with the case. The four arrested in the latest bust were described as being “relatively close to the core” of JPEX, which is the largest fraud case of its kind in Hong Kong.

The latest developments brought the total number of people arrested in the city to 18, with the force saying more could be expected. Officers had also traced several people who had fled the city and the force would ask for international cooperation, Chung said.

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Police said they had received 2,417 complaints against the trading platform involving more than HK$1.5 billion in alleged losses as of Friday.

Earlier arrests included social media influencers who had advertised for the trading platform and set up their own over-the-counter shops. They included Chan Wing-yee, Joseph Lam Chok and Sheena Leung.

The dramatic unravelling of JPEX began on September 13, when Hong Kong’s Securities and Futures Commission accused the platform of operating without a license and a number of other “suspicious” activities.

JPEX, however, has vehemently denied the claims, and started implementing exorbitant withdrawal fees for users hoping to take out their virtual assets.