JPEX Unlicensed Exchange High-Yield Hype & KOL Endorsements: The Largest Virtual Asset Scam in Hong Kong History

Who Gets Targeted

Victims are primarily local retail investors in Hong Kong, aged between 25 and 50, most of whom are cryptocurrency novices familiar with the internet but lacking formal financial knowledge. They were lured by slogans of 'high returns, low risk' and endorsements from influencers and celebrities, mistakenly believing the platform was compliant. Encouraged by fake profit data and screenshots of successful withdrawals, victims continuously increased their investments, even taking out loans to deposit funds. When withdrawals were denied or delayed, the platform used excuses like 'system upgrades' or 'tax audits' to pacify them. Driven by the sunk cost fallacy, victims chose to wait, ultimately losing everything.

骗局怎么运作

• Step 1: Packaging an overseas shell company as a 'compliant exchange.' The JPEX team claimed to hold licenses in jurisdictions like Japan, rented overseas office addresses, and designed a professional website to mislead investors into believing the platform was regulated. Tactics included claims of being 'globally leading' and 'having applied for a Hong Kong license,' despite the fact that the Hong Kong Securities and Futures Commission (SFC) never approved any such license.
• Step 2: High-profile promotion and KOL endorsements. The platform collaborated with numerous influencers, celebrities, and 'crypto experts' to gain massive exposure through social media, short videos, and offline events. KOLs displayed 'real withdrawal' screenshots and claimed to have invested tens of millions, often receiving huge promotion fees to create a 'bandwagon effect' where followers believed celebrities were also participating.
• Step 3: Luring large funds through locked-staking products. JPEX launched 'wealth management packages' with extremely high annualized returns, requiring users to lock their funds for several months. The backend displayed fake profits, leading users to believe their capital was safe and encouraging them to invest more.
• Step 4: Creating withdrawal barriers. When users applied for withdrawals, the platform refused or delayed them using excuses like 'system maintenance,' 'tax payments required,' or 'security deposits.' Customer service would continuously pacify users and demand proof of funds, increasing the victims' sunk costs and trapping them into depositing more to 'unfreeze' their assets.
• Step 5: Asset siphoning and exit scam. The platform aggregated user deposits into multiple third-party wallets and quickly transferred them via stablecoin exchanges. As public skepticism grew, the platform suddenly lowered withdrawal limits or disabled deposits, claiming it was 'hacked' or 'under malicious attack,' before the masterminds fled with the funds, leaving victims to report the crime.
• Step 6: Money laundering and jurisdictional loopholes. The masterminds used overseas companies and multi-level accounts to split funds, making cross-border evidence collection difficult for victims. Police required assistance from Interpol to track the suspects, and a portion of the funds remains unrecovered to this day.

红旗信号（看到这些快跑）

• 🚩 The platform claims to have 'applied for' or 'holds overseas' licenses but cannot be found in any official regulatory registry, and avoids providing license numbers by citing technical reasons.
• 🚩 Wealth management products offer annualized returns far exceeding market levels, require long-term lock-ups, and create a sense of scarcity through 'limited quotas' or 'first-come, first-served' policies.
• 🚩 A large number of influencers and celebrities post identical promotional content, often using inflammatory language like 'learn to invest with me' or 'I've already made hundreds of thousands.'
• 🚩 Withdrawal processes involve multiple hurdles: first requiring account upgrades, then tax payments, then anti-money laundering investigation fees—excuses are endless, but funds are never released.
• 🚩 User agreements state that disputes are subject to overseas jurisdiction and explicitly disclaim liability for capital losses; the app is frequently renamed or changes download channels after complaints arise.

真实案例

• In September 2023, Hong Kong police received reports from over 1,600 victims regarding the JPEX case, involving HK$1.2 billion. Police froze over HK$60 million in assets and arrested the first 8 suspects, including an influencer who assisted in promotions. At the time, the platform still claimed to have 'partially resumed withdrawals,' but most users never received their funds. (Source: HK01)
• On November 5, 2025, Hong Kong police formally charged 16 individuals, including 6 core members and influencers 'A' and 'B'. Interpol issued Red Notices for 3 key masterminds, indicating that the primary planners remain at large. (Source: Hong Kong Commercial Daily / HK01 Global)
• On March 26, 2026, Hong Kong police charged another 10 people for conspiracy to launder money, bringing the total number of arrests to 80. Case schedules revealed that several other entertainers and internet celebrities were under investigation, with the total amount involved reaching approximately HK$1.6 billion (approx. US$206 million at the time). (Source: Hong Kong Commercial Daily / Gate News)

Official Stance

• In September 2023, the Commercial Crime Bureau of the Hong Kong Police Force confirmed receiving numerous reports related to JPEX, initiated an investigation into 'conspiracy to defraud,' and froze relevant bank accounts and assets. (Source: HK01)
• On November 5, 2025, Hong Kong police announced the charging of 16 individuals (including 6 core members) and named 3 key masterminds for pursuit, confirming the case had entered the judicial process. (Source: Hong Kong Commercial Daily)
• On March 26, 2026, Hong Kong police charged an additional 10 people for 'conspiracy to launder money,' totaling 80 arrests; officials reiterated that they would continue to trace the flow of funds. (Source: Hong Kong Commercial Daily)

How to Protect Yourself

• ✅ Before investing, check the 'List of Unlicensed Companies and Suspicious Websites' on the SFC website and ask the exchange for its SFC license number; if they cannot provide it, refuse to deposit funds.
• ✅ Maintain skepticism toward any virtual asset project recommended by KOLs, influencers, or celebrities. Check if the promoter has disclosed 'promotion fees' or 'partnerships,' and do not place orders based on celebrity influence.
• ✅ Start with a small deposit and immediately apply for a full withdrawal to test the platform's process. If there are delays, excessive fees, or requests for additional documentation, stop using the platform immediately.
• ✅ Choose virtual asset trading platforms licensed by the Hong Kong SFC and avoid using apps from unknown sources or overseas entities without regulation. Keep records of all transfers, chat logs, and promotional screenshots.
• ✅ If you suspect fraud, call the Hong Kong Police 'Anti-Scam Helpline 18222' or visit a police station, and apply to your bank to freeze any related remittances as soon as possible.