INTERPOL and crypto (Part 7): Red Notices issued in the JPEX crypto fraud case

Hong Kong police have charged 16 individuals in connection with the JPEX cryptocurrency fraud case, more than two years after investigations began. Those charged include core members of the JPEX platform, OTC exchange operators, and social media influencers facing allegations of fraud, money laundering and inducing others to invest in virtual assets. Notably, INTERPOL has issued Red Notices for three key suspects who are believed to have fled the city, underscoring the global dimension of this case.

Background

We have been closely tracking INTERPOL’s growing crypto expertise, including its development of a “global stop-payment mechanism”, which enabled it to recover the largest-ever amount of funds (specifically, $42.3 million) following a business email compromise scam. In addition, seven individuals were arrested.

INTERPOL’s ongoing Operation HAECHI VI has achieved even more impressive results.  As part of this operation, INTERPOL issued a Purple Notice to warn countries about an emerging cryptoasset fraud trend.

In February 2025, we reported that INTERPOL had issued a Purple Notice, seized $400 million in virtual assets and arrested over 5,500 suspects.

Separately, we also covered more specific developments, such as the successful extradition of a Brazilian national from Switzerland to the United States to face indictment for an alleged cryptocurrency fraud scheme.

We now turn to the latest developments in a Hong Kong operation where 16 individuals have been charged in connection with the JPEX case.

The JPEX crypto fraud case – Red Notices issued

It has just been reported that Hong Kong police have charged 16 individuals in connection with an alleged crypto fraud scheme involving cryptocurrency trading platform JPEX. Charges related to allegations of conspiracy to defraud, money laundering and perverting the course of justice.

Police further revealed that INTEPROL has issued Red Notices for three allegedly key figures who are believed to have fled the jurisdiction.

The alleged scam began in 2020, when “ubiquitous” adverts were placed around Hong Kong promoting JPEX as a low-risk, high-return investment platform. Trading houses and influencers are alleged to have helped to lure investors into the scheme.

To date, 80 individuals have been arrested, and almost 3,000 victims have come forward to report losses exceeding HK$1.6 billion.

Suitability of INTERPOL

Crypto-related crimes present unique challenges to authorities, as the decentralised nature of cryptoassets and the gap between them and more conventional financial institutions creates significant hurdles to international policing.

This makes international cooperation essential, which can be challenging, given that some INTERPOL members may not be as quick to establish a regulatory framework.

Given the borderless nature of some cryptoasset transactions, an organisation with global reach like INTERPOL is very suitable for coordinating the steps required to assist with both pursuing the individuals alleged to have committed criminal offences involving crypto and tracing any associated proceeds of crime.

As always, it is important to ensure that INTERPOL is always used in compliance with all the applicable rules and regulations.

International dimension of offences involving crypto

Using INTERPOL to pursue allegations involving cryptoassets is not unheard of. Following earlier reports that South Korea had requested INTERPOL to issue a Red Notice for developer Do Kwon – the founder of the failed crypto currency Terra, Gherson’s criminal litigation, investigations and regulatory team wrote a blog titled “Can INTERPOL issue a Red Notice in relation to allegations involving crypto?”.

INTERPOL also assisted with the attempt to locate Ignatova Bajatova, who was involved in the OneCoin scandal.

As well as being at risk of INTERPOL measures, such as Red Notices, those who suspect that allegations involving crypto have been made against them could also be at risk of extradition.

As discussed in our previous blogs entitled “Can I be extradited for allegations involving crypto?” and “Another US crypto extradition”, due to the borderless nature of crypto transactions, any allegation of criminality will inevitably involve multiple jurisdictions. As such, there may be numerous jurisdictions claiming authority and trying to extradite an alleged perpetrator to their jurisdiction to face justice. Indeed, there have now been two examples of individuals being extradited to the US in relation to allegations involving crypto.

The vast majority of criminal allegations, if not all, that form the base of a crypto-related criminal investigation are of a financial crime nature, e.g. fraud, money laundering and insider dealing. They can also include alleged offences relating to the breach of financial regulations.

Therefore, due to the nature of this technology, and as this technology becomes more prevalent, we stand to see a large increase in the instances of INTERPOL being used to locate individuals accused of allegations involving crypto.

International crypto dimension – criminal investigations, litigation and extradition

Those who suspect they may be subject to an extradition request from the UK, or who are just concerned about liability across multiple jurisdictions including the UK, should get in touch.

Gherson’s criminal litigation, regulatory and investigatory team combine an expert knowledge of criminal and regulatory law underpinned by a firm understanding of digital assets and blockchain technology. As such, the team are able to provide expert strategic advice to anyone facing investigation in relation to any allegation of criminality involving cryptoassets. Working alongside the extradition team, Gherson’s criminal litigation, investigations and regulatory team are able to provide an unparalleled service in any case with an international dimension.  The team are also able to call upon lawyers in multiple other jurisdictions and build multi-jurisdictional teams to assist with any suitable defence.

INTERPOL, Red Notices and crypto

In addition, those who suspect that a jurisdiction may have requested INTERPOL to process data relating to them for any allegations of offences involving crypto, or are just concerned about potential liability, should get in contact.

Gherson Solicitors continue to receive requests for expert advice and assistance from those who have reason to believe that they may have outstanding financial issues which could involve INTERPOL. That advice tackles:

1. How best to approach a possible INTERPOL red notice;
2. Preparing for potential criminal proceedings / an extradition request;
3. Preparing for a situation where a civil matter or commercial dispute could be used to initiate bogus criminal proceedings; and
4. Even exploring the possibility of instigating civil litigation proceedings to recover any misappropriated assets.

Gherson have previously written a series of blogs designed to assist those who suspect they might be subject to INTERPOL measures (including a Red Notice):

INTERPOL and Red Notice Challenges

How to Remove an INTERPOL Red Notice

INTERPOL Red Notices and Extradition

How do I know if I am subject to an INTERPOL Red Notice?

Regulation and compliance

In these constantly changing times, firms that deal with cryptoassets, and who may have exposure to firms that do, will need to carefully consider all their systems and controls to ensure that they are able to comply with all relevant AML and sanctions regulations.

How Gherson can assist

Gherson’s white-collar crime and regulatory team are able to provide advice and assistance with AML and sanctions compliance, including in situations involving cryptoassets.

Additionally, the team has recently started a series on the regulation of crypto, with the aim of advising those who work in the compliance of this sector. Individuals and companies seeking advice on the relevant issues, including problems with the FCA registration process, will be guided by our specialist regulatory and compliance team.

Please do not hesitate to contact us for further advice, send us an e-mail, or, alternatively, follow us on X, Facebook, or LinkedIn to stay up-to-date.

The information in this blog is for general information purposes only and does not purport to be comprehensive or to provide legal advice. Whilst every effort is made to ensure the information and law is current as of the date of publication it should be stressed that, due to the passage of time, this does not necessarily reflect the present legal position. Gherson accepts no responsibility for loss which may arise from accessing or reliance on information contained in this blog. For formal advice on the current law please do not hesitate to contact Gherson. Legal advice is only provided pursuant to a written agreement, identified as such, and signed by the client and by or on behalf of Gherson.

©Gherson 2025