The implosion of cryptocurrency exchange JPEX continues to unfold as Taiwanese prosecutors reportedly identified new suspects.
According to local TV channel TVBS News, the Taipei District Prosecutor’s Office (TDPO) requested the detention of Zhang Dongying, the chief partner of JPEX Taiwan office, on suspicion of fraud. report November 9.
Taipei prosecutors reportedly searched nine locations related to the JPEX investigation and summoned Zhang and three other alleged suspects. Authorities determined that Zhang and JPEX instructor Shi Yusheng (also known as Shi Yu) were suspected of violating banking laws and money laundering control laws.
Other defendants were released, including JPEX salespeople Liu Jianfu and Niu Gengsheng. Liu was released on bail of NT$50,000 (US$1,550), while Niu, the head of JPEX Taiwan registration, was released after interrogation, the report said.
The report also pointed out that Taiwanese celebrity and singer Chen Jiuzeng represent As a brand ambassador, JPEX was also summoned by prosecutors. According to reports, prosecutors initially named Chen Jiu as a defendant after calling him as a witness to testify.
Once a successful cryptocurrency exchange, JPEX suddenly stopped some services in mid-September 2023, citing “unfair treatment” by multiple institutions in Hong Kong that triggered a liquidity crisis. The sudden implosion prompted accusations that JPEX misled investors by claiming it had applied for a cryptocurrency trading license and other issues.
Related:Financial Secretary: JPEX scandal will not harm Hong Kong’s cryptocurrency vision
JPEX soon became the center of a major scandal in the industry. Hong Kong authorities launched an investigation after receiving more than 2,000 complaints from JPEX users, reporting losses of nearly $180 million. The implosion of JPEX has become a major concern for financial regulators in Hong Kong, Taiwan and other countries, with many authorities taking new measures to protect investors from losses caused by similar incidents.
As of September 25, law enforcement agencies have arrested at least 11 suspects in connection with the JPEX case, while the alleged mastermind is still at large.
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