New developments in the JPEX fraud case》Hong Kong police prosecuted 16 people involved in the case, and two masterminds are still at large

The Hong Kong police formally prosecuted 16 individuals involved in the JPEX virtual asset trading platform on charges including conspiracy to defraud, money laundering and obstruction of justice. In addition, three people were accused of providing "puppet accounts" to assist in money laundering. Currently, two masterminds of the JPEX case are still at large, but the police said they have issued red notices for them through Interpol.
(Preliminary summary: JPEX victims won the lawsuit! The court ruled to return 240,000 USDT and pursue Lu Shuguang?)
(Background supplement: Chen Lingjiu was involved in desertion and forged documents and paid a bail of NT$300,000! Netizens complained: JPEX’s endorsement fee is so high that it is not afraid of fines)

Contents of this article

According to a report in Ming Pao today (5th), the Commercial Crime Investigation Bureau of the Hong Kong Police formally prosecuted 16 people involved in the JPEX virtual asset trading platform today, with charges including conspiracy to defraud, money laundering and obstruction of justice. To date, the case has dragged on for more than a year, affecting more than 2,700 investors and causing cumulative losses of up to HK$1.6 billion.

Unlicensed operation has become the main focus of conviction

JPEX Exchange was named by the Hong Kong Securities and Futures Commission as an unlicensed operating exchange as early as September 2023, and exaggerated its cooperation with Visa. In this prosecution, the police for the first time cited the fraudulent investment provisions in the Regulations on Combating Money Laundering and Terrorist Financing, indicating that officials have included virtual asset fraud into the mainstream financial regulatory framework.

KOL involved in the publicity chain

The list of persons involved includes core personnel of the JPEX exchange, relevant personnel of the Over-the-Counter Exchange (OTC), and community KOLs. Internet celebrities Lin Zuo, Chen Yi, "Xiang Xiang" and YouTuber "Zhu Gongzi" were accused of using their social influence to promote JPEX's high-yield plan, which amplified the market's FOMO sentiment and made it difficult for ordinary investors to withdraw. In addition, three people were accused of providing "puppet accounts" to assist in money laundering.

Currently, there are still two masterminds of the JPEX case at large, but the police stated that they have issued a red notice for them through Interpol.

Investors face a long road to recovery

According to "Bus News", most victims have to go through civil litigation to have a chance to get their deposits back. Not only is the procedure cumbersome, but the entire amount may not be recovered.

In addition, relevant transaction information is also scattered on the chain and in financial accounts in multiple countries, making it more difficult to locate assets. This also poses a test to the court’s determination of the ownership of virtual assets.