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Hong Kong is trying to become a global hub for next-generation technologies but a major crypto scandal has hit the city

By Joel Guinto & Martin Yip

BBC News in Singapore and Hong Kong

Hong Kong police are investigating allegations of fraud against cryptocurrency trading platform JPEX after investors complained of HK$1.3bn ($166m; £134m) in losses.

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

The case could be one of Hong Kong's biggest fraud cases, local media say.

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

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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.

The platform, on the other hand, said it had "strived to comply" with the local requirement which took effect in June this year, but its efforts were "dismissed or sidestepped with official rhetoric" by the Commission.