Co-founders and top executives of the collapsed Hong Kong exchange JPEX are allegedly on the run, with police having arrested only 11 suspects so far. The report comes from South China Morning Post.
Among those in custody are former lawyer and crypto influencer Joseph Lam Chok, as well as YouTube bloggers Chan Wing-yi and Chu Ka-fai.
Lam Chok held a press conference in which he tried to distance himself from JPEX. He said that he had not participated in the company’s commercial activities for a long time and did not rent an office from it.
As of 23 September, police had received 2,265 complaints from victims, and total damages had exceeded $178 million.
Authorities also arrested the corporate secretary of the exchange’s technical support service, Cang Cho-shun. Shortly before the collapse, the organization was renamed from JPEX Technical Support Company to Web 3.0 Technical Support.
Police detained two more technical department staff — Jason Chan Hiu-ho and Tan Lap-sun.
The investigation questioned actor and singer Julian Chung-Chilam, actress Jacqueline Chang Se-Min, and TV host Clement Chan Ting-bong. All three served as JPEX ambassadors.
According to sources, the chief executive of JPEX is a certain Kwok Ho-lun, but he may be a front man. Police have issued him with a want notice.
Hong Kong authorities are likely to have sought Interpol’s help after spotting suspicious transfers from the exchange, insiders said.
Additionally, the Australian arm of JPEX filed a voluntary application with the local regulator to suspend its crypto‑services provider license.
On 25 September, amid the exchange’s turmoil, the Hong Kong Securities and Futures Commission (SFC) promised to intensify efforts to combat unlicensed trading platforms in the jurisdiction.
The regulator will publish a list of all legitimate and verified companies, as well as compile a list of ‘suspicious’ organisations.
SFC’s Chief Enforcement Officer Christopher Wilson explained that, because of JPEX’s ‘evasive’ behaviour and unsatisfactory responses to data requests, the exchange drew attention as far back as 2022.
According to the Commission’s statement, the collapse of the platform underscores the risks associated with unregulated companies and the need for proper oversight to maintain market confidence.
Earlier, Hong Kong authorities restricted local access to the JPEX site and app. In response, its representatives said that the government is ‘unjustifiably’ blocking activity, and urged clients to use VPN services.