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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 on Wednesday that Interpol was on the hunt for two masterminds and one core member of JPEX, after local police laid charges against six core members, seven influencers and individuals involved in over-the-counter (OTC) operations, as well as three stooge account holders. So far, 80 people, including 14 core members of a criminal syndicate, have been arrested, with HK$228 million seized, since the investigation began in September 2023. Over 2,700 people fell victim to the scam, which involved losses of more than HK$1.6 billion. Those on the wanted list include Mok Tsun-ting, 27, Cheung Chon-cheong, 30, and Kwok Ho-lun, 28. Senior Superintendent Fanny Kung Hing-fun said several suspects fled the city before the force made the arrests, and police have issued a red alert through Interpol on the trio. The recent prosecution marks the first time the force has charged suspects under the Anti-Money Laundering and Counter-Terrorist Financing Ordinance. Among the 16 suspects, the six core members and seven influencers and individuals involved in OTC activities were charged under the ordinance with fraudulently or recklessly inducing others to invest in virtual assets. The offence carries a maximum fine of HK$1 million and seven years’ imprisonment. The six core members were also charged with conspiracy to defraud and perverting the course of public justice, while the other seven involved in OTC activities also faced charges of fraud. All 16 arrestees were charged with money laundering, with Lam and another influencer, Chan Wing-yee, among them, according to a source. Lam, a former lawyer who went on to have a stint in insurance, was arrested two years ago over conspiracy to defraud. He held a high-profile press conference after he was released on bail, stating that he was no longer involved in JPEX’s business activities. He also said he had prematurely terminated the rental contract for his office. Police had earlier searched the premises and seized boxes of evidence and a significant amount of cash. JPEX has been accused of misleading investors while continuing to operate without a licence to offer virtual asset trading services. As of February 8, 2024, the force had received reports from 2,636 victims over the JPEX case, involving losses of over HK$1.6 billion. The 16 suspects are set to appear in Eastern Court on Thursday morning.
