Hong Kong police are investigating allegations of fraud against cryptocurrency trading platform JPEX after investors complained of US 166m in losses.

Eleven people, including popular influencers, were arrested this week after complaints filed by 2,000 people.

Local media say the case could be one of Hong Kong’s biggest fraud cases.

It also tests new financial regulations as Hong Kong positions itself as a global hub for virtual assets.

Last week, Hong Kong’s Securities and Futures Commission, SFC, revealed the Dubai-based JPEX had been operating without a license for virtual asset trading.