Hong Kong Authorities Charge 16 in Massive JPEX Crypto Fraud Case Worth Over $200 Million

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HONG KONG, Nov 5 2025 – Hong Kong police have charged 16 people connected to the JPEX cryptocurrency fraud, a case involving more than $200 million in investor losses that authorities describe as one of the city’s largest digital-asset crimes.

The investigation began after more than 2,600 investors filed complaints about frozen funds and misleading advertisements. The Commercial Crime Bureau and the Securities and Futures Commission (SFC) worked together for months before filing charges. Their findings revealed that JPEX operated without a virtual-asset license and promised returns of up to 20 percent on deposits.

Police Superintendent Raymond Lam said officers seized HK$180 million in cash, property, and crypto wallets. In addition, several digital wallets were frozen across international exchanges. “We found evidence that the platform moved funds overseas before closing withdrawal access,” he said during a press briefing.

16 charged in JPEX crypto fraud case – over 2 years since initial arrests. In full: https://t.co/hYQVWFUa2G

— Hong Kong Free Press HKFP (@hkfp) November 5, 2025

Authorities explained that JPEX used aggressive social-media marketing and influencer partnerships to attract retail traders. Many investors believed the company was licensed because of its public endorsements. As a result, thousands deposited stablecoins and other digital assets in anticipation of high monthly interest.

Prosecutors said the defendants include platform executives, marketing managers, and financial agents. Each faces charges of conspiracy to defraud and money laundering. Under Hong Kong law, a conviction can lead to up to 14 years in prison. The Department of Justice confirmed that the case will proceed to trial in early 2026.

The SFC noted that it had issued warnings to JPEX before the collapse. However, the company continued promoting its services, claiming compliance with Hong Kong’s new virtual-asset framework. “The public must verify a firm’s license before trading,” an SFC spokesperson said.

Meanwhile, legal analysts believe the case will serve as a benchmark for crypto-crime enforcement. Dr. Michael Chan, a financial law expert, said the trial “will show how traditional fraud statutes can address blockchain-based crimes.” His statement reflects the growing effort to adapt financial laws to digital markets.

In addition, the JPEX prosecution highlights Hong Kong’s push to strengthen regional cooperation. Investigators are coordinating with Interpol and the Australian Federal Police to recover funds and identify cross-border wallets. Similar actions are underway in Japan and Singapore, both tightening crypto rules to protect investors.

Authorities said more arrests may follow as forensic teams analyze on-chain data. They are also reviewing whether foreign marketing partners violated Hong Kong’s securities regulations. This coordinated response marks a shift from passive monitoring to active enforcement.

Analysts said the outcome will influence how the city balances innovation with investor safety. Could this case restore confidence in Hong Kong’s regulated digital-asset market? Observers believe that consistent enforcement and transparent guidelines will help rebuild trust.

As of now, assets worth HK$180 million remain frozen pending court orders. The SFC is reviewing additional exchanges suspected of operating without approval. In the coming months, officials plan to expand investor-education programs to prevent similar losses.

Recap

• 16 individuals charged in JPEX crypto fraud
• Estimated losses exceed $200 million
• Assets seized: HK$180 million in cash and crypto
• First major prosecution under Hong Kong’s new virtual-asset rules