Taiwan detains key JPEX personnel amid fraud probes

The Taipei District Prosecutors Office today detained two people responsible for JPEX’s operations on suspicion of fraud.

Chang Tung-Ying, the chief partner of the troubled crypto exchange’s Taiwan Office, and Shi Yu, a lecturer affiliated with JPEX, have been taken into custody for alleged violations of relevant banking and anti-money laundering laws, according to a report by Taiwan’s semi-official Central News Agency. 

The prosecutors’ office confirmed the news with The Block on a phone call. JPEX did not immediately respond to The Block’s request for comment.

The prosecutors said they directed the local justice investigation bureau to carry out probes at nine locations and subsequently summoned four suspects. One suspect surnamed Liu was released on bail of NT$50,000 (US$1,550) and another surnamed Niu was released after questioning. Reports showed that JPEX in June started to promote cryptocurrency-related products and solicit investments. 

Nine Chen, a Taiwanese singer who once served as JPEX’s brand ambassador in Taiwan, also testified as a witness but prosecutors may later summon him as a defendant if he was determined involved in the case in a lawsuit, local newspaper Liberty Times reported. 

The size and scope of JPEX’s operations in Taiwan remain unclear, but local media reported that more than 10 victims who claimed to be affected by JPEX have filed lawsuits related to the case.

Currently, Taiwan requires virtual asset services providers to comply with anti-money laundering laws since the Financial Supervisory Commission introduced those rules in July 2021. JPEX, however, has not registered with the FSC for AML compliance.

JPEX operations busted in Hong Kong

In September, Hong Kong authorities busted JPEX's local operations and arrested at least 11 people related to the alleged fraud case.

The Hong Kong financial regulator and police also blocked JPEX’s mobile app and website.

“Since September 13, 2023, the SFC has suddenly made a series of accusations against our platform’s operating model and promotional methods, which we vehemently resent as they were made without investigation or review,” JPEX said at the time.