Over the past three years, there has been a significant increase in crimes related to cryptocurrencies in Hong Kong. The number of cases during this period has almost tripled, indicating a growing trend of criminality in this area.
Finance Minister Hui Ching-yu reported that from 2021 to 2023, the Hong Kong Securities and Futures Commission (SFC) observed a substantial rise in cases involving virtual assets. The number of criminal offenses increased from 1,397 to 2,336, and then to 3,415, with the total value of the involved financial resources soaring from 824 million to 1.704 billion, and finally to 4.398 billion yuan.
Detention and Prosecution of Offenders
The police's approach to the detention and prosecution of offenders varies depending on the specific circumstances of individual cases. An example is the scandal with the cryptocurrency exchange JPEX, where 70 individuals were arrested, but no charges have been filed yet.
Decline in Trust in Cryptocurrencies after the JPEX Scandal
The JPEX exchange scandal significantly shook the confidence in cryptocurrencies in Hong Kong. Since the beginning of February this year, the SFC and the police have collaborated on sharing information with more than 100 platforms for trading virtual assets. Decisions to initiate investigations of complaints against trading platforms are dependent on a range of factors, including connections to Hong Kong and the extent of law violations.
The Central Fraud with JPEX
The fraud associated with the JPEX exchange was a key case last year. Following a liquidity crisis, the exchange suspended its operations, which led to an extensive investigation by the SFC. Police received thousands of complaints from affected clients with total losses exceeding 152 million dollars. In relation to this, eight suspects were detained, with their accounts and assets being frozen and seized amounting to 1.9 million and 5.6 million dollars, respectively.
International Collaboration and Criminal Prosecution
As part of the fraud investigations, Taiwan also engaged in the detention of key JPEX managers, indicating international efforts to combat cryptocurrency crimes.
Notice:
,,The information and views presented in this article are intended solely for educational purposes and should not be taken as investment advice in any situation. The content of these pages should not be regarded as financial, investment, or any other form of advice. We caution that investing in cryptocurrencies can be risky and may lead to financial losses.“
