The leader of the Bitcoin broker that stopped the withdrawals is caught destroying evidence in a bathtub full of water

In a scene that would make crime movie writers jealous, Hong Kong police conducted a raid on the cryptocurrency exchange’s leaders JPEXwith four major arrests made on Friday (29).

The case made headlines because one of the police targets found next to a bathtub full of shredded documents. While the scene may seem like the sad aftermath of an accident, authorities think otherwise.

What was once a harmless bathtub, home to rubber ducks and the occasional bubble bath, has turned into a source of evidence that has undergone a rigorous “cleaning.” Police say the man tried to destroy evidence.

Broker freezes withdrawals

The action against JPEX comes just days after the platform froze withdrawals for customers. Additionally, the Hong Kong Securities and Futures Commission (SFC) has issued warnings against the company.

As reported by Livecoinsthe JPEX scandal began on September 13, when the regulatory body accused the platform of operating without a license in the country and stated that it had several “suspicious features”.

At the time, a famous influencer in the country was arrested for promoting the platform on his social networks. He was approached while in his office and evidence was seized, including a laptop, mobile phone and cash.

Joseph Lam Chok arrested.  Image: thestandard.com.hk
Joseph Lam Chok arrested. Image: thestandard.com.hk

Meanwhile, more than a thousand customer complaints have been registered against the company, claiming that investors have lost R$171 million.

According to local media, around R$580,000 in cash was found in an apartment of one of the company’s leaders, along with documents in various states of dissolution and, even more curiously, fake credit cards with the company’s logo on them.

Many of the brokerage’s victims were novice investors, lured by influencers and “investing” classes that, in retrospect, looked more like cryptocurrency scammers.

It is worth noting that before freezing withdrawals, the company advertised its cryptocurrencies in city taxis and promised that their prices would increase 50 times, in addition to offering a “savings account” with a huge annual return of З0%.

JPEX Taxi
JPEX Taxi

18 people arrested

The authorities’ latest action against JPEX brings the total number of people detained in the case to 18, all of whom are Hong Kong residents. Authorities also managed to seize approximately R$5.5 million in cash and gold, in addition to R$3 million in cryptocurrencies.

According to police, the total estimated loss in the scandal exceeds the R$950 million mark. The investigation continues and authorities are now trying to find the main character behind the company.

Source: Live Coins

follow:
\