Chief Partner of JPEX Taiwan Office Held in Custody
The saga of the collapsed cryptocurrency exchange JPEX takes another turn as Taiwanese prosecutors have reportedly discovered new alleged suspects. The Taipei District Prosecutors Office (TDPO) has requested the detention of Chang Tung-ying, the chief partner at JPEX's Taiwan office, over allegations of fraud, according to local TV channel TVBS News.
Multiple Locations Searched and Suspects Summoned
Taipei prosecutors have searched nine locations linked to the JPEX investigation and have summoned Chang and three other individuals as alleged suspects. Chang and JPEX lecturer Shih Yu-sheng are being investigated for potential violations of the Banking Act and Money Laundering Control Act.
Release of Some Defendants
JPEX salespersons Liu Chien-fu and Niu Keng-sheng have been released, with Liu being granted bail of 50,000 new Taiwan dollars ($1,550). Niu, who is a registered person in charge of JPEX Taiwan, was released after being questioned by authorities.
Taiwanese Celebrity Summoned as Defendant
Prosecutors have also summoned Taiwanese celebrity and singer Nine Chen, who previously served as a brand ambassador for JPEX. Initially called to testify as a witness, Chen has now been named as a defendant by prosecutors.
JPEX's Rapid Decline and Ongoing Investigation
JPEX, once a successful cryptocurrency exchange, abruptly halted some services in mid-September 2023, citing a liquidity crisis resulting from "unfair treatment" by several institutions in Hong Kong. The collapse of JPEX led to allegations of misleading investors and false claims about applying for a crypto trading license. Hong Kong authorities launched an investigation after receiving numerous complaints from JPEX users who reported losses totaling nearly $180 million.
Concerns for Financial Regulators and Arrests Made
The implosion of JPEX has raised significant concerns among financial regulators in Hong Kong, Taiwan, and other countries. In response, authorities have introduced new measures to safeguard investors from similar incidents. So far, law enforcement has arrested at least 11 alleged suspects in the JPEX case, but the masterminds behind the operation remain at large.
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