Core Viewpoint - The JPEX incident is described as the largest cryptocurrency collapse in Hong Kong's history, revealing systemic risks associated with unlicensed platforms and false advertising, prompting a new phase in virtual asset regulation in Hong Kong [1][2][4] Summary by Sections Background - JPEX, established in 2020 and headquartered in Dubai, claimed to be a global digital asset trading platform, heavily promoting itself through advertisements in Hong Kong [5] - The platform falsely advertised holding financial licenses from jurisdictions like the US, Canada, Australia, and Dubai, which were later revealed to be limited to foreign exchange services [5][10] Incident Development - On September 17, 2023, JPEX froze withdrawals, leading to panic among investors and a surge in reports to the police [2][9] - Within days, the police arrested eight individuals, including KOL Joseph Lam, for allegedly misleading investors about JPEX's legitimacy [2][13] - By November 2025, 16 individuals were formally charged, including key members of JPEX and KOLs, with crimes including conspiracy to commit fraud and money laundering [4][15] Impact and Consequences - The incident has affected over 2,700 victims, with losses exceeding 1.6 billion HKD (approximately 206 million USD) [4][15] - The Hong Kong police have frozen assets worth 228 million HKD, including cash, gold bars, luxury cars, and virtual assets [4][16] - The case has prompted regulatory authorities to strengthen controls over virtual assets, highlighting the dangers of unlicensed platforms [4][6]