The
controversy surrounding the collapsed cryptocurrency exchange, JPEX, takes a
new turn as Taiwanese prosecutors identify fresh suspects in the ongoing
investigation. The Taipei District Prosecutors Office (TDPO) has reportedly
requested the detention of Chang Tung-ying, chief partner at JPEX’s Taiwan
office, over allegations of fraud, according to local TV channel TVBS News.
Authorities
executed searches at nine locations linked to the JPEX investigation, summoning
Chang and three other individuals, including JPEX lecturer Shih Yu-sheng, on
charges of violating the Banking Act and the Money Laundering Control Act.
JPEX
salespersons Liu Chien-fu and Niu Keng-sheng were released, with Liu granted
bail of 50,000 new Taiwan dollars ($1,550), while Niu, registered as a person
in charge of JPEX Taiwan, was released after questioning.
The
report also highlights the involvement of Nine Chen, a Taiwanese celebrity, who
was summoned by prosecutors. Initially called to testify as a witness,
prosecutors subsequently named Nine Chen as a defendant in the case. In a tweet from JPEX’s official
X account back in 2022, Nine Chen was announced as their brand ambassador.
📢 JPEX Announces Well-known Taiwanese Artist Nine Chen（Instagram：diegodtk09）as JPEX Brand Ambassador🎉
🔗 https://t.co/2oOXOB8ijt pic.twitter.com/5uxy1rkpnp
— JPEX_Official (@ExchangeJpex) November 14, 2022
JPEX
faced a sudden halt in some services in mid-September 2023, citing a liquidity
crisis allegedly triggered by “unfair treatment” from institutions in
Hong Kong. The abrupt collapse led to accusations of misleading investors about
having applied for a crypto trading license.
Hong
Kong authorities launched an investigation following over 2,000 complaints from
JPEX users, reporting losses nearing $180 million. The scandal has raised
concerns among financial regulators in Hong Kong, Taiwan, and other jurisdictions.
As
of September 25, law enforcement has detained at least 11 suspects in the JPEX
case, while the alleged masterminds remain elusive, heightening the complexity
of the investigation. The JPEX
saga continues to ring across the cryptocurrency industry, serving as a
cautionary tale for investors and regulators alike.
Gaps
in Hong Kong’s Regulatory Framework
Hong
Kong’s Securities and Futures Commission (SFC) has introduced new measures
aimed at protection for retail investors following the JPEX crypto exchange
debacle. Finance Magnates
reported. The initiatives, announced…
