JPEX and Affiliates Face Civil Lawsuit over Alleged $208M Cryptocurrency Fraud
Summary:
A civil lawsuit has been filed against cryptocurrency trading firm, JPEX, and various others, accusing them of a $208 million fraud. Claimants Herbert Lam Sung-him and Chan Wing-yan have lodged three alternate claims in the Hong Kong district court for a sum of $236,500 each. The suit is centered on three deposits made into JPEX wallets, totaling $110,500 in Tether and $130,000 in cash. JPEX is under investigation since September and 73 individuals have been arrested, with all currently out on bail.
A civil lawsuit has been launched against JPEX, a cryptocurrency trading firm, and several others, alleging a $208 million fraud scheme. This is the first civil lawsuit in this case, with potential for more in future. Claimants Herbert Lam Sung-him and Chan Wing-yan are each seeking restitution to the tune of $236,500 in the Hong Kong district court, as per South China Morning Post. On June 4, the duo lodged three alternate claims thereby providing the court the liberty to choose.
The affiliated company Web3.0 Technical Support, individuals involved in implementing or aiding the scheme, three identified “wallet holders,” and Felix Chiu King-yin, the general manager of Coingaroo, a JPEX-associated cryptocurrency exchange, are listed as defendants alongside JPEX.
The lawsuit centers on three deposits into JPEX wallets Chan made in July and August amounting to $110,500 in Tether (USDT) and $130,000 in cash, according to today's exchange rates. One of the transactions was conducted in Lam’s name. The pair later found themselves unable to retrieve the money. Records showed that the funds were moved out “within five minutes” after depositing.
Legal counsel for Chan and Lam, Joshua Chu Kiu-wah, states that a civil lawsuit is the only effective way for victims to recover their lost funds.
The probe into Dubai-headquartered JPEX commenced in September upon its identification as an unregulated virtual asset trading platform by the Hong Kong Security and Futures Commission. Eleven people were taken into custody that month. As per Hong Kong Free Press, the total arrests hit 73 by June 3, with all detainees released on bail.
Cited in the lawsuit is Joseph Lam Chok, also recognized as Lin Zuo, who is a prominent social media influencer and was among the arrestees. The authorities reported having received 2,265 complaints about JPEX by April. Lawmaker Johnny Ng Kit-chong mentioned his communication with hundreds of allegedly defrauded victims and is aware of at least 10 considered additional civil lawsuits.
Published At
6/6/2024 8:41:23 PM
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