Hong Kong security chief vows to hunt down ringleaders of JPEX crypto scandal as financial minister pledges ‘stable framework’ for Web3 businesses
- Secretary minister Chris Tang reveals police have also seized more than HK$8 million in cash and other assets worth HK$77 million as three more arrested
- Financial Secretary Paul Chan says Hong Kong must regulate business ventures tied to next generation of internet
Hong Kong’s security minister vowed to hunt down the ringleaders of cryptocurrency platform JPEX at the centre of the city’s largest alleged financial fraud as police arrested three more people over the scam on Wednesday.
Secretary for Security Chris Tang Ping-keung also revealed that police had seized more than HK$8 million in cash and other assets worth HK$77 million, including real estate and virtual currency, in the case involving HK$1.5 billion (US$191.9 million) in suspected losses and more than 2,400 victims.
“Police are doing their best to locate the whereabouts of the leader of the platform. This is definitely a major factor in their investigation,” Tang said.
The minister provided the update on the latest twist in the police investigation as Financial Secretary Paul Chan Mo-po said Hong Kong must regulate business ventures tied to the next generation of the internet.
“The government notices the prevailing trend of blockchain technology. But at the same time, we must incorporate business operations related to Web3 into a proper regulatory framework and crack down on any illegal activities,” Chan said, upon returning home from a 10-day trade tour of Europe.
Authorities would continue to impose “balanced regulations” to ensure a stable framework that protected investors’ interests, while also ensuring financial stability and preventing the risk of money laundering, he said.