More than 1,640 people have now made complaints about losing money on the unlicensed cryptocurrency exchange JPEX, the Hong Kong police said at a press conference on Tuesday (Sept. 19) afternoon, involving almost HK$1.2 billion in losses.
The number of arrests in the case rose to eight.
They added that they have seized HK$8 million in cash, and frozen property and bank accounts worth around HK$60 million as part of their investigation.
Through social media influencers, JPEX used social media platforms, put up advertisements, and promoted "high return, low risks" associated with its products, which hoodwinked many "inexperienced" investors, said Kung Hing-fun, senior superintendent of the Commercial Crime Bureau.
Speaking at the same press briefing, the Securities and Futures Commission (SFC) said it has been watching JPEX since last year, but lacked the power to act because the platform is not under its jurisdiction.
The commission's licensing director, Wong Lok-yan, said the watchdog will instead step up investor education, such as letting people know the risks of trading on unregulated platforms.
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