New Suspects Identified in JPEX Case

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  • The Taipei District Prosecutors Office has identified four additional suspects in the JPEX scandal
  • Among those initially detained were the chief partner at JPEX’s Taiwan office, although three of the four have been released or bailed
  • Another individual has seen their status changed from witness to defendant

Taiwanese police have identified four more suspects in the JPEX scandal including the chief partner at JPEX’s office in Taiwan as the hunt for accomplices in the $191 million scam continues. The Taipei District Prosecutors Office (TDPO) recently searched nine locations related to the JPEX investigation and arrested four individuals, including Chang, while also changing the status of former JPEX spokesperson Nine Chen from witness to defendant. Three of the four arrested were either released or bailed, with only Chang retained to face further questions over his role in the criminal enterprise.

$191 Million in Losses

Once a flourishing crypto exchange, JPEX abruptly ceased some services in mid-September citing a liquidity crisis linked to “unfair treatment” from Hong Kong institutions. The sudden collapse raised accusations of JPEX misleading investors about a crypto trading license application, sparking a major scandal.

Hong Kong authorities received over 2,000 complaints over JPEX, accounting for almost $180 million in losses, and initiated an investigation. The investigation revealed losses of over $190 million, and the story has become a major embarrassment for authorities who are struggling to contain the fallout. A dozen alleged suspects have been arrested in relation to the fraud, although the purported masterminds remain at large.

A Dozen Individuals Arrested

The latest raid saw Liu Chien-fu, a JPEX salesperson, released on NT $50,000 (US $1,500) bail, while Niu Keng-sheng, the registered person in charge of JPEX Taiwan, was allowed to return home. The investigation into JPEX revealed that from June 2023 onwards, Chang and others allegedly persuaded the public to invest in financial products like the virtual currency JTC.

The JPEX debacle is now a focal point for financial regulators in Hong Kong, Taiwan, and other nations, prompting new measures to safeguard investors.