HONG KONG — Hong Kong police have charged 16 individuals, including influencer Joseph Lam Chok, with fraudulently or recklessly inducing others to invest in virtual assets, conspiracy to defraud, and money laundering in the HK$1.6 billion (US$205.8 million) JPEX cryptocurrency scandal—the city’s largest alleged financial fraud to date.
Chief Superintendent Ernest Wong Chun-yue of the Commercial Crime Bureau said Interpol is searching for three JPEX masterminds: Mok Tsun-ting (27), Cheung Chon-cheong (30), and Kwok Ho-lun (28). Local police have already charged six core members, seven influencers and OTC operators, and three stooge account holders.
Since September 2023, authorities have arrested 80 people, including 14 core syndicate members, and seized HK$228 million. Over 2,700 victims reportedly lost funds exceeding HK$1.6 billion.
Wong described the investigation as “highly difficult and complex” due to the sheer volume of victims and cryptocurrency transaction data. Investigators are performing detailed digital forensics and analyzing bank records to track the flow of funds.
Among the 16 charged, the six core members and seven influencers/OTC operators face penalties under the Anti-Money Laundering and Counter-Terrorist Financing Ordinance for inducing investments in virtual assets, carrying a maximum sentence of seven years imprisonment and a HK$1 million fine. All 16 are also charged with money laundering, with Lam and fellow influencer Chan Wing-yee included.
JPEX, launched in 2020, promoted investments as low-risk with high returns via advertisements and social media influencers. After the Securities and Futures Commission warned JPEX was unlicensed in 2023, the platform raised cryptocurrency withdrawal fees, preventing clients from accessing their assets. Investigators say JPEX transferred client funds across multiple cryptocurrency wallets, with some suspects using proceeds to buy luxury cars, cash, and gold bars.
Lam, a former lawyer and insurance professional, was previously arrested for conspiracy to defraud. After being released on bail, he held a press conference claiming he had ended all JPEX business activities. Police earlier searched his office, seizing evidence and cash.
The 16 arrestees are scheduled to appear at Eastern Court on Thursday. Police warned that further arrests are possible as the investigation continues.
