2023 JPEX broke out a virtual asset fraud case, involving more than HK$1.6 billion and more than 2,700 victims, making it the largest crypto fraud in Hong Kong's history. After consulting the Department of Justice, the police formally charged 16 people yesterday (November 5), including Lin Zuo, Chen Yi, Xiang Xiang and other Internet celebrities. A total of 80 people have been arrested, and the flow of funds and the mastermind behind the scam are still being tracked down. This article summarizes the complete timeline and people involved in the case, bringing you a clear picture of the JPEX scam in one article!
How much money is involved? Where are the funds going?
JPEX is one of the largest virtual asset fraud cases in Hong Kong, which broke out in the second half of last year, involving more than 1,000 investors and a total amount of more than HK$1.6 billion. The platform claimed to be "low risk, high return" and attracted a large number of Hong Kong retail investors, but in the end, most of the money invested was not recovered, leaving the investors with nothing.
After the incident came to light, it not only caused serious losses to the victims, but also undermined the public's confidence in the cryptocurrency market, and at the same time triggered the government and regulators to examine the loopholes in the management of this kind of virtual asset business. The SFC later admitted that JPEX had never applied for a license from the authorities and that all the related marketing campaigns were misleading. The police also pointed out that the case involved nearly 3,000 people in Hong Kong, which demonstrated the impact of the case.
2020: JPEX established
JPEX was established in 2020, claiming to be headquartered in Dubai, and was quickly publicized in Hong Kong. In its early days, the company boasted "low-risk, high-return" financial products and advertised heavily in MTR stations and street ads. In order to attract investors, the company paid high salaries to recruit blockchain celebrities and social media celebrities to endorse its products - including KOL Lin Zuo, who once ran a virtual currency exchange store in Hong Kong, and internet celebrity Chen Yi (CYOTC Chen Dayi).
These "cryptocurrency celebrities" have been promoting JPEX on social media platforms and in crypto seminars, creating the illusion that the platform is legitimate and reliable. However, behind the glittering publicity, the anomalies were gradually exposed. JPEX advertised that it had obtained licenses from overseas regulators and had cooperated with listed companies, all of which were false. Investors in the high interest rate temptation to sign the deposit, but do not know has stepped on the road of no return to fraud.
Sing Tao Daily related reports:JPEX Case｜A look at JPEX's tactics to attract customers and the controversy behind it. Spending a lot of money on advertising and finding artists to endorse KOL cooperation.
As we enter September 2023, regulators are finally raising the red flag on JPEX's questionable off-market behavior. on September 13th, the SFC issued a statement naming JPEX and its promoters, listing at least six questionable business practices and demanding that any related promotions cease. The statement pointed out that JPEX's claim that it had applied to the SFC for a license and received permission was simply untrue, and that the high yields promised by some of its products were also untenable. As soon as the news broke, the platform's funds fell into a black hole.
The following day (September 14th) JPEX issued an internal announcement that it was going to "adjust its business" by increasing the fee for withdrawals in the hope that this would "appease" investors. However, the SFC quickly refuted its public relations statement, stating that JPEX had not contacted the SFC since its statement on September 13th, and that it suspected that this matter was related to fraud, and therefore referred the case to the police for action.
2023: Police arrests begin
Starting from September 18, 2023, the Commercial Crime Bureau (CCB) of the Police launched a series of arrests. Dozens of people have been arrested in Hong Kong, many of whom are KOLs in the "coin community" who have been involved in promoting JPEX: those arrested include Lam Chok, Chan Yee, and the "Goddess of Coins", Xiang Xiang, among others.
The police also raided a number of cryptocurrency over-the-counter (OTC) exchanges in Hong Kong, such as Coingaroo and Crypto Leopard, and seized a large amount of assets and evidence. Chilam Cheung, the Hong Kong "brand ambassador" who appeared in JPEX advertisements, was invited to assist in the investigation on September 19th; his brokerage company issued a statement on September 21st, explaining that it had already terminated any cooperation with JPEX as early as the issuance of the warning statement by the Securities and Futures Commission (SFC), and on September 22nd, the police even asked telecommunication service providers to block the website and apps of JPEX to prevent more people from being defrauded. On 22 September, the Police even asked telecommunication companies to block JPEX's website and applications to prevent more people from being cheated.
In June 2024, victims have already recovered their losses through civil litigation: two victims filed a petition against JPEX, a company registered in Hong Kong, alleging that their funds had been transferred without authorization, and the District Court ruled in favour of the victims in the absence of the defendants, recovering about 247,000 TTD (about HK$1.85 million).
The amount involved is as high as HK$1.6 billion.
The latest announcement by the police shows that as of November 5, 2025, 2,709 investors in Hong Kong have reported that they have been defrauded, involving about HK$1.6 billion. As many victims chose not to pursue the case or were difficult to contact, the actual number of people involved is expected to be close to 3,000. So far, 80 people have been arrested and the police have prosecuted 16 of them. The defendants include six core members of the syndicate, seven netizens associated with off-market exchanges or publicity and promotion, and three suspected money laundering puppet account holders.
In addition, the police have issued a Red Notice to Interpol for the arrest of two fugitive masterminds and a key player. Investigations have revealed that a number of the arrested persons had huge sums of unexplained income in their bank accounts, and had even purchased luxury assets such as expensive cars and gold bars, and the flow of funds is being traced.
Many of the "Internet celebrities" involved in the case not only publicized the case on social media, but also held seminars to lure their fans to invest in virtual currency. The police announced that among the 16 people charged were six KOLs and Internet celebrities who had endorsed JPEX, such as Lin Zuo, Chen Yi, Zhu Gongzi, Xiang Xiang, as well as Zhao Jingxian (酒粒仔), the person in charge of the "Swap Shop", and Au Cheuk Kei (區焯基), the director of the operation of the store. In addition, a TV artist Zheng Yongxi, who had appeared in JPEX advertisements, was also charged.
The case also set a precedent: for the first time, the police invoked section 53ZRG of the Anti-Money Laundering Ordinance, which will come into force in 2023, to specify that any person who "fraudulently or recklessly induces another person to invest in virtual assets" commits an offence and is liable to a maximum penalty of seven years' imprisonment.
In other words, as long as the netizens know the truth when promoting the case and still induce investment, they will be held criminally liable. As for other members of the performing arts circle, such as Tsang Chi-wai, who was rumored to be involved in the case, it was actually just speculation. He once responded humorously that he was "too stupid to understand such things", indicating that he himself was not directly involved.
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Disclaimer
The content of this article is for reference only, investors should exercise independent judgment, invest prudently and at their own risk, this article does not provide or attempt to persuade the audience to do trading or investment basis, the content is for sharing purposes only, and should not be regarded as investment advice.It does not represent the views and position of Monsterblockhk.All information and opinions are current as of the date of the judgment. In addition, if a judgment is rendered on aIn this siteAny content related to virtual asset trading platforms that have not yet obtained a license to operate virtual asset trading platforms in Hong Kong, including but not limited to text introductions, pictures, offers, events, etc., are only available to users outside the Hong Kong Special Administrative Region.
According to the Hong Kong Anti-Money Laundering and Counter-Terrorist Financing (Amendment) Ordinance 2022, after June 1, 2023, all centralized virtual asset trading platforms operating in Hong Kong or actively promoting their services to Hong Kong investors will be licensed and regulated by the SFC, and any related unlicensed activities will be a criminal offence. For more information and details of the legislation, users may refer to the SFC website.