JPEX has seen over HKD 160 million worth of virtual currency flow out, and the police will investigate whether it is suspected of money laundering

ChainCatcher news, according to Hong Kong Ming Pao, the virtual currency platform JPEX is involved in a conspiracy fraud case. As of 5 PM yesterday, the Hong Kong police have received reports from 2,265 individuals, with the amount involved increasing to approximately HKD 1.4 billion.

Hong Kong Web3.0 Association member and Legislative Council member Wu Jietzhuang cited data from over 50,000 hot wallets closely linked to JPEX, stating that since the Securities and Futures Commission issued a warning about JPEX's unlicensed status last Wednesday, at least HKD 167 million worth of virtual currency has been transferred out of the JPEX platform as of September 22. This includes approximately HKD 2.63 million in BTC, approximately HKD 20.8 million in ETH, approximately HKD 13.6 million in USDT, and over HKD 100 million in USDC, with most of the transfers occurring on or after this Monday.

Some cryptocurrency fraud analysis consultants believe that JPEX has significantly increased withdrawal fees in the past week, yet a large amount of funds continues to flow out. They suspect that the funds being transferred are not from retail investors, indicating unusual fund movement, likely orchestrated by "whales." It is understood that the police will investigate the flow of funds and collaborate with financial institutions to trace criminal proceeds, examining whether there are any links to money laundering or other crimes, and will also seek assistance from overseas law enforcement agencies.