In regard to the unlicensed cryptocurrency exchange JPEX, the police reported that another three men had been arrested on suspicion of conspiring to commit fraud, bringing the total number of arrests to 11 people. On the platform, more than 2,000 users have so far claimed losses totaling HK$1.3 billion.
Sources said the police had asked telecom operators to block the JPEX website.
Meanwhile, the Securities and Futures Commission (SFC) issued a statement rejecting claims by JPEX that it had sought guidance from the regulator in the hope of complying with legal requirements but had received no positive response.
The SFC said it had made inquiries about what it called JPEX's misrepresentations and unlicensed activities, but the platform had been uncooperative.
It said there hadn't been any communication between the SFC and JPEX on licensing-related matters.
"The SFC affirms that JPEX has never approached the SFC regarding any potential license application and that the SFC licenses no entity in the JPEX group or has applied to the SFC for a license to operate a virtual asset trading platform in Hong Kong. As such, there has been no communication between the SFC and JPEX on licensing-related matters," the statement says.
"Subsequent information obtained has led to suspicion of fraud, and the SFC has referred the matter to the Police. The SFC cannot comment further as investigations are ongoing," according to the statement.
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