Two individuals have taken legal action against cryptocurrency trading firm JPEX and various other defendants for an alleged fraud amounting to 1.6 billion Hong Kong dollars ($208 million). This marks the initiation of the first civil suit in the matter, with more anticipated to follow.
Herbert Lam Sung-him and Chan Wing-yan have both lodged claims seeking $236,500 each in the Hong Kong district court, as reported by the South China Morning Post. On June 4, the duo presented three alternative claims, giving the court the option to select from them.
Apart from JPEX, the lawsuit also implicates an associated company, Web3.0 Technical Support, along with any individuals involved in carrying out or aiding in the scheme. Additionally, three individuals identified as “wallet holders” and Felix Chiu King-yin, the general manager of JPEX-linked cryptocurrency exchange Coingaroo, are listed as defendants.
The lawsuit centers around three transactions made by Chan into JPEX wallets in July and August, totaling $110,500 in Tether (USDT) and $130,000 in cash at the current exchange rate. One of these transfers was executed in Lam’s name. Subsequently, the plaintiffs encountered difficulties in withdrawing these funds, discovering that the funds had been swiftly transferred out of their wallets within minutes of being deposited.
According to Chan and Lam’s lawyer, Joshua Chu Kiu-wah, a civil suit represents the sole recourse for victims seeking to reclaim their lost funds in the alleged fraud case involving JPEX.
The investigation into JPEX, based in Dubai, commenced in September after the Hong Kong Security and Futures Commission identified it as an unlicensed virtual asset trading platform. In that month, eleven individuals were apprehended. As per the Hong Kong Free Press, the tally of individuals arrested had reached 73 by June 3, all of whom have been released on bail.
Among the arrested individuals was social media influencer Joseph Lam Chok, also known as Lin Zuo, specifically mentioned by the plaintiffs in their lawsuit. By April, the police had received 2,265 complaints against JPEX. Legislator Johnny Ng Kit-chong disclosed that he had been in contact with numerous victims of the alleged scam and was aware of ten additional civil suits being contemplated.
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