Two individuals connected to the JPEX scandal have filed a lawsuit in Hong Kong courts seeking to recover HK$5.5 million (approximately $703,300).
The lawsuit names plaintiffs Herbert Lee Sung-him and Chan Wing-yan against JPEX Crypto Asset Platform, a firm accused of financial fraud totaling HK$1.6 billion, and its associated entity, Web 3.0 Technical Support.
The plaintiffs are also seeking to hold accountable “any persons who carried out or assisted in the scheme,” including three wallet address holders linked to the JPEX platform.
Felix Chiu King-yin, general manager at Hong Kong cryptocurrency exchange Coingaroo, which reportedly has operational ties to JPEX, is also named as a defendant.
Chan alleges that she paid Chiu HK$1,850,000 (equivalent to $237,179), part of which he converted into 195,499 USDT (Tether) and deposited into a JPEX wallet. She also told police that she made several deposits totaling 247,498 USDT to two JPEX wallets in July and August of last year, only to find the assets transferred within five minutes of each deposit.
The plaintiffs claim that the deposited assets were moved to dozens of unknown wallets before they checked their accounts on September 14th of last year. They are also seeking to recover another 226,012 USDT, which they say was converted to other cryptocurrencies without authorization.
The plaintiffs are asking the court to trace the lost funds and issue an injunction to freeze the cryptocurrency held on various platforms. Technology legal specialist Joshua Chu Kiu-wah is representing the plaintiffs.
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