The ongoing legal proceedings related to the JPEX fraud case in Hong Kong have been postponed until March 16, 2026. This delay comes as prosecutors require additional time to compile extensive case files stemming from a two-year investigation into the collapsed cryptocurrency exchange.
The JPEX collapse has had significant repercussions, impacting over 2,700 victims who collectively lost more than $206 million. Influencers who promoted the platform are facing serious charges, including conspiracy to defraud and fraud, amongst others. These individuals acted as the public representatives for JPEX”s over-the-counter cryptocurrency trading operations.
During a recent hearing at the Eastern Magistrate”s Court, the decision to adjourn the case was confirmed, allowing prosecutors to better prepare their evidence. Seven of the eight defendants were granted bail under their original conditions. Notable figures among those charged include Joseph Lam, a lawyer-turned-influencer, YouTuber Chan Wing-yee, and former TVB actor Cheng Chun-hei, who opted not to seek bail and will remain in custody.
The JPEX exchange collapsed in September 2023 after Hong Kong”s Securities and Futures Commission (SFC) issued warnings about its unlicensed operations and misleading claims. Following the platform”s abrupt failure, numerous users reported that their withdrawals had been frozen, prompting the investigation.
As part of the police”s ongoing investigation, which has seen over 80 arrests, 16 individuals were charged on November 5, including six core members of the alleged JPEX syndicate. Charges against the accused range from conspiracy to defraud and money laundering to obstructing justice and unlawfully inducing investments in virtual assets, in accordance with Hong Kong”s anti-money laundering regulations.
The fallout from the JPEX scandal has prompted a reevaluation of the regulatory landscape for cryptocurrencies in Hong Kong. The SFC is now focusing on enhancing its communication regarding licensing and educating the public about the risks associated with virtual assets. This incident has also dampened public sentiment towards cryptocurrencies as the government attempts to position Hong Kong as a hub for Web3 and digital assets.
Beyond Hong Kong, JPEX”s operations extended to the Philippines and Taiwan, where additional victims were reported. Notably, three individuals believed to be behind the scheme are currently at large and are subjects of Interpol red notices. These individuals include Hong Kong nationals Mok Tsun-ting, Cheung Chon-cheng, and Kwok Ho-lun, with the latter linked to a company associated with JPEX in Australia and has been unaccounted for since 2023.
