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The Hong Kong police have filed charges against 16 people linked to a suspected fraud case involving the cryptocurrency trading platform JPEX,more than two yearsafter the agency started looking into it.

The Police Commercial Crime Bureau stated on Wednesday that the 16 individuals arrested were key members of JPEX, people responsible for over-the-counter (OTC) cryptocurrency trading, social media influencers, and those who managed nominee accounts.

The matter will be discussed at the Eastern Magistrates’ Courts on Thursday morning.

Six main individuals faced charges of plotting to deceive, handling illicit funds, and interfering with legal proceedings.

The police for the first time utilized the Anti-Money Laundering and Counter-Terrorist Financing Ordinance, which was revised in 2022, to charge the six main individuals involved in the exchange platform with the crime of “fraudulently or recklessly encouraging others to invest in virtual assets.”

Seven influencers and operators of over-the-counter trading houses have been accused of fraud, money laundering, and improperly or carelessly encouraging others to invest in digital assets. The three individuals who held nominee accounts are facing charges related to money laundering.

On Wednesday, the police stated that Interpol has issued a Red Notice for three men suspected of being central figures in the JPEX case who have left the city: 27-year-old Mok Tsun-ting, 30-year-old Cheung Chon-cheng, and 28-year-old Kwok Ho-lun.

The Red Notice obliges law enforcement agencies globally to find and temporarily detain an individual in preparation for extradition, handover, or other legal procedures. As stated on the Interpol website, it is not an international arrest warrant.

Referencing unidentified sources, local media reported thatinfluencer Joseph Lamand YouTuber Chan Wing-yee – also known as “Chan Yee” – was among the 16 charged.

The police claimed that JPEX, which started its operations in 2020, ran “widespread” advertisements throughout the city to present itself as a cryptocurrency exchange offering low risks and high profits. Over-the-counter trading firms and influencers played a role in promoting the platform, attracting victims to create accounts and invest in JPEX.

The cryptocurrency platform subsequently implemented limits on withdrawal amounts and increased the fee for processing withdrawals, causing users to be unable to access their digital assets, according to the police. The suspects moved the customers’ assets and cleaned the money through various crypto wallets.

Several of the suspects had purchased high-end vehicles or had a significant sum of money, which was inconsistent with their earnings, according to the police.

A significant development in the city’s biggest cryptocurrency scandal occurred over two years after the first arrests in September 2023. To date, 80 individuals have been detained, and over 2,700 people have reported being victims in this case. Their combined losses surpassed HK$1.6 billion.

Following Wednesday’s charges, 64 people remain under investigation without being prosecuted, including eight individuals the police previously recognized as key members of the criminal group.

Chief Superintendent Ernest Wong mentioned during a press briefing on Wednesday that the JPEX case was “extremely complex,” necessitating officers to examine “vast quantities of data and financial records.” The police required time to perform forensic analyses on electronic devices confiscated in the case before pinpointing crucial evidence for legal action.

They also needed to work with professionals from various disciplines, along with the Securities and Futures Commission, which identified JPEX’s “suspicious activities” and stated it was unlicensed in 2023, during the two-year investigation.

“At this time, we are concluding the initial phase of reviewing our evidence. Following discussions with the Department of Justice, we have chosen to bring 16 individuals to court. We will keep investigating, and it is possible that we may charge or arrest additional people,” Wong stated.

The JPEX case has cast a cloud over Hong Kong’s adoption of digital assetsand exposed regulatory shortcomings only a few months after the city implemented regulations mandating that cryptocurrency exchanges obtain licenses and adhere to investor protection guidelines.