Hong Kong JPEX crypto scandal: dividends plan by defiant platform prevents users from withdrawing assets
- Police arrest two more suspects linked to fast-growing case of alleged fraud involving more than HK$1.5 billion in assets
- Among the suspects is TV actor Cheng Chun-hei, 29, who was arrested around midday in Tai Po
The cryptocurrency platform at the centre of a growing HK$1.5 billion financial scandal has pressed on with a plan to convert stored user assets into shareholder dividends that can only be claimed in two years, while Hong Kong police have arrested two more suspects linked to the case.
In a related development, the securities watchdog said on Wednesday evening that it had set up a working group with police to allow closer collaboration on sharing information and investigating illegal activities related to virtual asset trading platforms.
The Securities and Futures Commission said the group would involve its enforcement and intermediaries divisions and three police bureaus.
Earlier on Wednesday, a user of the JPEX platform told the Post she and some other victims of the biggest local case of alleged digital currency fraud could no longer withdraw their assets, hours after the company announced it would proceed with the plan to boost cash flow and retain investors.
The user, who preferred to remain anonymous, said they were not told the exchange rate for JPC.
