Taiwanese Prosecutors Uncover New Suspects in Ongoing JPEX Crypto Exchange Fraud Probe
Summary:
The collapsed crypto exchange JPEX drama continues as new suspects have been identified by Taiwanese prosecutors. Leading associate of JPEX's Taiwanese branch, Chang Tung-ying, has been detained on fraud allegations. Several locations tied to the JPEX investigation were searched, with various individuals, including Chang, being questioned. Formerly successful, JPEX abruptly shut down certain services in mid-September 2023, causing significant concerns for financial regulators in Hong Kong, Taiwan, and elsewhere. Over 2,000 complaints from users alleging losses of nearly $180 million spawned an industry-wide investigation. As of September 25, at least 11 people linked to the JPEX case were arrested.
The unraveling drama of the collapsed digital currency exchange, JPEX, sees its plot thicken with Taiwanese prosecutors identifying additional purported suspects. The Taipei District Prosecutors Office (TDPO) ordered Chang Tung-ying, the leading associate of JPEX's Taiwanese branch, to be detained on suspicion of fraud, according to local TV network, TVBS News, on November 9.
Nine locations tied to the JPEX investigation were reportedly searched by Taipei prosecutors, who called in Chang and three other potential suspects for questioning. Chang and JPEX presenter Shih Yu-sheng (also known as Shi Yu) were singled out as possible culprits in the case, charged with contravening the Banking Act and the Money Laundering Control Act.
Other accused individuals were let go, among them JPEX sales representative Liu Chien-fu and Niu Keng-sheng. As the report states, Liu was freed on a bail of 50,000 New Taiwan dollars ($1,550), while Niu, who is officially in charge of JPEX Taiwan, was released after being interrogated.
It is also stated that Nine Chen, a Taiwanese entertainer and vocalist who previously served as a spokesperson for JPEX, was beckoned by prosecutors. Prosecutors designated Nine Chen a defendant, despite initially inviting him to give evidence as a witness.
Formerly a triumphant digital coin exchange, JPEX suddenly shut down certain services in mid-September 2023, blaming a cash-flow catastrophe triggered by 'unjust conduct' from several Hong Kong-based establishments. The abrupt collapse sparked accusations that JPEX had deceived investors by alleging to have sought a cryptocurrency trading permit among other issues.
The JPEX crisis rapidly exploded into a significant debacle in the sector. More than 2,000 grievances from JPEX users, reporting almost $180 million in losses, led to an investigation by Hong Kong's governing bodies. The downfall of JPEX has become a major alarm for financial watchdogs in Hong Kong, Taiwan, and other nations, with numerous bodies deploying new provisions to safeguard investors from similar financial disasters.
As of September 25, at least 11 people suspected of involvement in the JPEX case were arrested, while those believed to be orchestrating the scheme remained at large.
Published At
11/9/2023 9:33:36 AM
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