New development in the JPEX case: Hong Kong police formally charge 16 people including 6 core members of the criminal group

Virtual Asset Fraud Case JPEX Sees Major Breakthrough: Hong Kong Police Announce New Round of Prosecutions

The recent JPEX case has taken a significant turn as Hong Kong police officially announced the launch of a new round of prosecutions. According to information disclosed by Superintendent Huang Zhenyu of the Commercial Crime Bureau, this prosecution involves 16 defendants, including 6 core decision-makers and main operators of the JPEX criminal group, and 10 other participants at various levels, such as OTC traders, influencers, and puppet account holders.

Six-Tiered Prosecution System Formed, Covering from Mastermind to Accomplices

This prosecution demonstrates Hong Kong police’s comprehensive understanding of the entire criminal network. Based on the charges announced by the police, the 6 core members face the most serious charges, including conspiracy to commit fraud, money laundering, obstruction of justice, and additional charges under Chapter 615 of Hong Kong law. Meanwhile, 7 OTC-related individuals and influencers are charged with fraud, money laundering, and related virtual asset investment scams, while 3 puppet account holders mainly face money laundering charges. This layered prosecution strategy reflects law enforcement’s precise delineation of responsibilities among different participants.

During the operation, police froze approximately HKD 228 million in assets, including over HKD 14.5 million in cryptocurrencies, as well as properties, luxury cars, bank balances, and cash. This substantial asset freeze highlights the enormous scale of interests involved in the scam group.

First Use of New Legislation, Virtual Asset Fraud Charges Established

This prosecution is of landmark significance as it is the first time Hong Kong police have invoked the new law, the Anti-Money Laundering and Counter-Terrorist Financing Ordinance, Section 53ZRG, which came into effect on April 1, 2023. The ordinance stipulates that anyone who induces another person to enter into a virtual asset agreement through fraudulent or false statements that are misleading or untrue commits a crime. Conviction can result in a HKD 1 million fine and up to 7 years in prison. The enforcement of this new legislation indicates progress in Hong Kong’s regulatory efforts in the virtual asset sector.

Over 2,600 Victims Entrapped, Over HKD 10 Billion Involved

Background data reveals the shocking scale of the JPEX scam’s victims. The Hong Kong Security Bureau announced that, as of February 2024, the Police Force had received 2,636 reports related to JPEX. Among these, 666 individuals have chosen not to pursue further action; 659 who were contacted multiple times by police could not be reached; and 1,311 have fully provided statements. The total amount involved reaches HKD 1.616 billion, affecting victims across all social strata.

Police stated that over 2,700 people reported suspected scam involvement, but due to some victims abandoning pursuit or being difficult to contact, the actual number of cases filed has decreased. This reflects victims’ multiple considerations—some may give up due to hopelessness of recovery, while others may refrain from reporting due to privacy concerns or other reasons.

Victim Relief Channels to Be Developed; Civil Litigation Becomes Main Option

Regarding how victims can recover losses, Superintendent Huang Zhenyu said that civil litigation may be necessary, and advised victims to seek professional legal advice. This indicates that compensation claims will involve lengthy legal procedures. Police also urged those who have expressed disinterest or have not yet been contacted to reconsider providing information, to support further investigation and prosecution with stronger evidence.

International Pursuit Initiated; Three Key Figures Still at Large

Although 16 individuals have been formally charged, some top figures of the JPEX scam group remain at large. Hong Kong police have cooperated with INTERPOL to issue red notices for three fugitives, including the mastermind Huang Zhenjie and his former assistant Mo Junting, who have been wanted since July 2024.

A check on INTERPOL’s official website shows that the red notice for Huang Zhenjie, known as “Bi Shao,” is still active. This indicates that the case has escalated from local law enforcement to international pursuit, making it difficult for these individuals to hide in most countries worldwide. Police stated that more arrests may follow, and the investigation into the JPEX case is far from over.