Hong Kong Stock Exchange JPEX Incident Tracking

ChainCatcher news, Taiwan's "Financial Supervisory Commission" confirmed that it has received reports alleging that JPEX is illegally soliciting in Taiwan and providing evidence, and has forwarded the information to the investigation agency for further action. Due to the significant number of victims in Taiwan, the amount involved has reached tens of millions of New Taiwan dollars. After an investigation by the Taipei City Investigation Office, singer Chen Lingjiu, who was responsible for endorsements, was recently interviewed in secret, with the case being classified as fraud.JPEX has no business representative in Taiwan, and the investigation agency interviewed Chen Lingjiu (real name Chen Zhihao) as a witness. Chen Lingjiu stated that the entire matter was initiated by Rolling Stone Records' agent Liu Bai-liang, and he was only responsible for the endorsement, claiming to be a victim himself. It is still under evaluation whether the investigation agency will interview Liu Bai-liang. The investigation agency is looking into the fact that Chen Lingjiu's endorsement fee reached eight digits, far exceeding the general market rate. After the JPEX case broke out, the company located next to SOGO in Taipei's East District was found empty, with posters of Chen Lingjiu posted outside the building. Victims have no recourse for compensation and can only file a report with the investigation agency. Whether Chen Lingjiu was completely unaware of the situation remains to be clarified, and whether he will be changed from a witness to a defendant will depend on the evidence collected.The investigation agency estimates that JPEX has invested a large marketing budget in Taiwan, including spokespersons and media, with marketing costs reaching tens of millions. It will be further clarified whether this includes victim funds or illegal cash flows; the "Financial Supervisory Commission" pointed out that according to company law, if an overseas virtual trading platform is a foreign company and has not registered a branch office, it is prohibited from conducting business in Taiwan, with criminal and civil liability. Whether there has been a violation of money laundering laws will depend on whether JPEX has engaged in exchanges of New Taiwan dollars, foreign currencies, and other currencies.

ChainCatcher news, according to Sing Tao Global, Hong Kong Legislative Council member Wu Jietzhuang stated that in the past few weeks, together with other volunteer lawyers, he has provided pro bono legal services for about 100 JPEX victims. He mentioned that some victims are seeking self-help through various methods, including civil lawsuits, pursuing compensation from the involved money exchange shops or KOLs, and considering collective action with other victims affected by the same money exchange shop. However, due to the varying amounts involved, ranging from hundreds of thousands to over a million, and the sensitivity regarding legal fees, they are still seeking legal advice and have not yet made a final decision.Additionally, Wu Jietzhuang pointed out that cryptocurrencies and other virtual assets are relatively new phenomena, and the third generation of the internet (Web3) is the future development direction for Hong Kong. As new products and investment opportunities emerge, there should be an enhancement in corresponding investor education to prevent fraud. He further noted that in the past, various virtual investment products have become tools for scams, and there may be other types of fraud in the future, hoping for government improvements. He continued to say that the Securities and Futures Commission responded quickly this time, but there is still room for improvement, suggesting the establishment of a research group as soon as possible to achieve a balance in the development, regulation, and investor protection of the third generation of the internet and virtual assets.

JPEX may have been a scam from the beginning to the end, and the exchange is just a facade.

ChainCatcher news, according to Ming Pao, the Hong Kong police have arrested 6 more men today, aged between 23 and 54, including the CEO and former directors of the over-the-counter (OTC) cryptocurrency company Crypto Leopard, a staff member from Tung Club, 2 staff members from Coingaroo, and a member of the JPEX group.It is reported that the founder and CEO of Crypto Leopard is known as "Little Dragon Sir," Chen Xiaolong. According to the information from the Companies Registry, "Crypto Leopard Limited" was established last November, and its incorporation form lists only one director, named Li Jialin, who resigned as director in August this year, with a Taiwanese individual surnamed Niu taking over.

ChainCatcher news, according to reports, the Assistant Commissioner of Police (Criminal) Chung Wing-man stated that a joint operation between Hong Kong and Macau took place from last Tuesday to Thursday (September 26 to 28), resulting in the arrest of 4 more individuals. During the operation, approximately 24 million HKD in assets were seized and frozen, bringing the total number of arrested individuals in the case to 18, all of whom are Hong Kong residents, with a total of nearly 100 million HKD in frozen assets. The investigation is now gradually entering the core of the JPEX fraud network and has identified key figures, with efforts continuing to uncover the masterminds and trace the illicit funds.

According to ChainCatcher news, as reported by Lianhe Zaobao, Hong Kong's Secretary for Security, Tang Pingqiang, stated today that the police have arrested 12 people in connection with the JPEX case and searched 16 over-the-counter (OTC) trading shops, seizing 8 million Hong Kong dollars in cash and freezing assets exceeding 77 million Hong Kong dollars, including properties and cryptocurrencies. Tang Pingqiang also mentioned that the police have received 2,392 reports to date and have contacted over 300 individuals, involving nearly 1.5 billion Hong Kong dollars.

ChainCatcher news, according to Sing Tao Daily, as of today (September 25) at 5 PM, the Hong Kong police have received reports from 2,360 victims in the fraud case involving the virtual asset trading platform JPEX, with a total amount involved of approximately HKD 1.49 billion (around USD 139 million).