Hong Kong Duo Wanted by Interpol for Alleged Crypto Investment Crimes
Two Hong Kong citizens, Wong Ching-kit and Mok Tsun-ting, have been red-noticed by Interpol for alleged cryptocurrency-related fraud.
Wong, 30, has been charged with fraud and theft whereas Mok, 26, is on the wanted list for handling property that belongs to the proceeds of a criminal activity. The red notices, which are like international wanted persons lists, were requested by the Hong Kong Police Force.
Legal Issues and JPEX Dispute
The legal problems of Wong and Mok began in March 2019 when the both of them were arrested by the Hong Kong police on charges of conspiracy to commit fraud. The two were indicted of making exaggerated statements on social media and in investment seminars to sell Filecoin mining machines.
As per the police report, since December 2018, 18 people have complained of being defrauded to the tune of HK$2.6 million (approximately $333,000). Wong and Mok were arrested and later on released on bail.
Wong, who is known as the “master of crypto,” and Mok, his aide, have been at the center of the Hong Kong cryptocurrency-related disputes. In September, Mok was arrested for the JPEX crypto exchange fraud that is the largest crypto fraud case in Hong Kong.
Nevertheless, the case has led to more than 70 arrests, and the estimated losses are HK$1.6 billion (around $205 million), with more than 2600 victims.
Interpol’s Role and Previous Cases
Red notice is a tool of Interpol that helps countries to exchange information regarding wanted persons across the globe. It depends on an arrest warrant or a court order from the judiciary of the requesting country. However, the red notice simply provides a basis for cooperation and it is up to the member countries to take action on it.
Wong and Mok are not the first people caught by Hong Kong authorities with the help of Interpol red notice. Before the current individuals, red notices have been issued for six other persons sought by the Hong Kong police.
In the previous year, the national security police of Hong Kong also arrested warrants against 13 activists from other countries, with a reward of HK$1 million (approximately $128,000) for their capture. But Interpol stated that no requests for red notices have been made for these activists.
Hong Kong’s Approach to Crypto Regulation
Within such legal questions, Hong Kong is in the process of building a strong legal environment for the crypto market. In the previous year, the Securities and Futures Commission (SFC) started a consultation on the regulatory framework for the sector. In March, the city-state’s Virtual Asset Service Providers licensing regime was launched, which means that crypto exchanges had to obtain a license from the regulator.
The submission of the virtual asset trading platform (VATP) crypto license applications in Hong Kong closed on the 29th of February with 24 submissions. Nonetheless, the region witnessed the shut down of several crypto exchanges in May, despite the efforts toward the development of a favorable atmosphere for cryptocurrencies.
Wong and Mok’s current legal issues and victims’ reported losses exemplify the dangers of investing in unregulated cryptocurrencies.
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