JPEX Fraud Case Update: Prosecutors Apply for the First Batch of 8 Defendants to Be Transferred to Hong Kong High Court for Trial

On November 9, according to Hong Kong media reports, police are investigating a fraud case involving the crypto assets trading platform JPEX. So far, 16 people have been prosecuted, one of whom has already appeared in court. The remaining 15 individuals are charged with conspiracy to commit fraud, money laundering, obstruction of justice, and under the “Anti-Money Laundering and Terrorist Financing Ordinance” for “fraudulently or recklessly inducing others to invest in virtual assets” among other charges. They appeared in multiple cases at the Eastern Magistrates' Court yesterday afternoon, and the 15 defendants do not need to plead at this time. The prosecution has applied to have the first case involving 8 defendants transferred to the High Court and postponed the hearing until December 15. Among the 8 defendants in the first case, except for former artist Zheng Junxi whose bail application was rejected by the court and must remain in custody, the other 7 were granted bail pending trial, with internet celebrity Lin Zuo and Chen Yingyi each bailed out for 300,000. Lin Zuo is charged with one count of fraud and one alternative charge (i.e., “fraudulently or recklessly inducing others to invest in virtual assets”). The indictment claims that from July 8 to September 12, 2023, he falsely represented or allowed others to make false statements and made fraudulent or reckless misrepresentations to induce others to enter into agreements concerning the acquisition, disposal, subscription, or underwriting of virtual assets. The prosecution pointed out that Lin Zuo was alleged to have been able to successfully withdraw assets from JPEX, possessing internal information that general investors could not access, and claimed that investing in designated virtual assets through JPEX could yield a specific percentage of return.