The JPEX crypto exchange scandal has escalated to become one of the largest fraud cases in Hong Kong, affecting over 2,300 victims and resulting in estimated losses exceeding $175 million.

Hong Kong's Secretary for Security, Chris Tang Ping-keung, has made a commitment to bring justice to those who fell victim to the JPEX crypto exchange fraud. In a press conference held on September 27, the security chief's office announced that local police are actively pursuing the key operators behind the JPEX crypto exchange, which orchestrated the largest digital asset fraud in the country.

During the press conference, Tang Ping-keung disclosed that the police have already made 12 arrests in connection with the case and have seized over 8 million Hong Kong dollars (equivalent to $1 million USD) in cash. Additionally, they have confiscated assets valued at 77 million HK$ ($9.8 million USD), including real estate and digital currencies, as reported by the South China Morning Post.

Tang emphasized that apprehending the ringleaders behind the JPEX crypto exchange fraud is crucial to solving the case.

The operators of JPEX crypto exchange are accused of operating an unauthorized cryptocurrency platform and defrauding customers of millions of dollars. Tang also stated that they are collaborating with the country's regulators to implement specific measures to prevent such fraud in the future.

Local police in Hong Kong have received a total of 2,369 complaints from victims who lost their funds by investing in the unregulated exchange. The total financial impact of the fallout is estimated to be approximately 1.4 billion HK$ ($178 million USD).

The police have made a dozen arrests related to the case, including three employees of JPEX Technical Support Company and two YouTubers, Chan Wing-yee and Chu Ka-fa.

The first indications of trouble regarding JPEX emerged on September 15 when several users reported difficulties in withdrawing their funds. As news of the withdrawal issues gained traction, the platform significantly raised its withdrawal fees to 999 Tether, a move aimed at discouraging users from withdrawing funds following a warning from regulators.