Hong Kong police charge Joseph Lam, 15 others in HK$1.6 billion JPEX crypto case

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 hunting for two masterminds and a core member of JPEX. That followed local police laying charges against six core members, seven influencers and individuals involved in over-the-counter (OTC) operations, and 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.

More than 2,700 people fell victim to the alleged scam, which involved losses of more than HK$1.6 billion.

Wong said the investigation was “highly difficult and complex” because of the number of victims and the massive amount of data, including bank and cryptocurrency transaction records.

“During an investigation, police need time to handle exhibits and evidence. We need to unravel the whole affair and look for useful information,” he said, adding that the force also had to conduct digital forensics.