JPEX Faces Fraud Allegations, Legal Turmoil in Taiwan, Hong Kong
On suspicion of fraud, the Taipei District Prosecutor’s Office detained today two individuals responsible for JPEX’s operations.
According to a report by Taiwan’s semi-official Central News Agency, Chang Tung-Ying, the chief partner of the troubled cryptocurrency exchange’s Taiwan Office, and Shi Yu, a lecturer affiliated with JPEX, have been detained on suspicion of violating pertinent banking and anti-money laundering legislation.
A phone call from the prosecutor’s office confirmed the news. JPEX’s response to The Block’s request for comment was not immediate.
The local justice investigation bureau was tasked with conducting investigations at nine locations, and four suspects were subsequently summoned, according to the prosecutors.
A suspect with the surname Niu was freed after interrogation, while one with the surname Liu was released on bail for NT$50,000 (US$1,550). According to reports, JPEX began promoting and soliciting investments in cryptocurrency-related products in June.
Local newspaper Liberty Times reported that Nine Chen, a Taiwanese vocalist who formerly served as JPEX’s brand ambassador in Taiwan, also testified as a witness. Still, prosecutors may later summon him as a defendant in a lawsuit if he is found to be personally liable.
The extent and magnitude of JPEX’s activities in Taiwan are still unknown; however, local media have documented that over ten plaintiffs have filed lawsuits alleging that the company was responsible for their injuries.
At present, virtual asset service providers in Taiwan are obligated to adhere to anti-money laundering regulations, which the Financial Supervisory Commission implemented in July 2021.
However, JPEX has not yet been registered with the FSC to ensure AML compliance.
Hong Kong authorities seized JPEX’s local operations and detained at least eleven individuals in September concerning the alleged fraud case.
The Hong Kong financial regulator and police also blocked the mobile application and website of JPEX.
JPEX stated at the time, “Since September 13, 2023, the SFC has abruptly leveled a series of allegations against the operating model and promotional methods of our platform, which we ardently resent because they were made without investigation or review.”