Hong Kong social media influencers face charges for promoting JPEX, which has suffered losses of up to 206 millions USD.

The prosecution in the Hong Kong JPEX fraud case has been granted permission to postpone the trial until next year in order to organize the case files. On Monday, a hearing was held at the Eastern Magistrates' Courts in Hong Kong, according to local media reports.

The next hearing is scheduled for March 16 (UTC+8), targeting a group of social media influencers accused of promoting JPEX and acting as its over-the-counter public spokespersons for cryptocurrency shops.

The charges they face include conspiracy to defraud, fraud, inducing others to invest in virtual assets in a fraudulent or reckless manner, and dealing with property known or believed to be proceeds of indictable offenses.

Of the eight defendants who appeared in court, seven were granted bail under the same conditions as before. The accused include lawyer-turned-influencer Lin Junjie, YouTuber Chen Yongyi, former TVB actor Zheng Junxi, and fitness coach Zhao Jingxian. Zheng Junxi did not apply for bail and will remain in custody.

In September 2023, the JPEX exchange collapsed. Previously, the Hong Kong Securities and Futures Commission (SFC) had warned that the platform was unlicensed and engaged in misleading promotions. Subsequently, users reported that withdrawals were frozen. According to authorities, more than 2,700 victims lost over $206 million (approximately HK$1.6 billion).

On November 5, 2023 (UTC+8), police arrested and charged 16 people, including six alleged core members of the JPEX criminal group, seven individuals related to over-the-counter cryptocurrency exchanges, and three puppet account holders. Over 80 people have been arrested during the investigation.

According to Hong Kong's anti-money laundering laws, those arrested face charges including conspiracy to defraud, money laundering, obstruction of justice, and illegally inducing others to invest in virtual assets.

JPEX and Cryptocurrency in Hong Kong

The collapse of JPEX has had a broader impact on Hong Kong's cryptocurrency industry, prompting the SFC to change the way it releases licensing information and conducts public education on virtual asset risks. In addition, as the government strives to position Hong Kong as a Web3 and digital asset hub, the scandal has also undermined public confidence in cryptocurrency.

In addition to Hong Kong, JPEX also promoted its services in the Philippines and Taiwan, where there are also victims.

It is believed that three men involved in this operation remain at large, and Interpol has issued red notices for their arrest. They are 27-year-old Hong Kong citizen Mo Junting, 30-year-old Zhang Juncheng, and 28-year-old Guo Haolun.

Guo is the sole director of a company associated with JPEX in Australia and has been wanted by police since 2023. Reports that he may still be in Australia have not been confirmed.