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JPEX Executives Arrested in Taiwan for Alleged Fraud After Investigations

JPEX arrests soar: Social media influencer on the run arrested in Hong Kong

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TL;DR

  • Two key figures behind cryptocurrency exchange JPEX were detained in Taiwan on fraud suspicions.
  • Chang Tung-Ying and Shi Yu were arrested after investigations at locations tied to JPEX’s Taiwan operations.
  • Prosecutors allege the suspects violated local banking and anti-money laundering laws.

Chang Tung-Ying and Shi Yu, two key figures behind the troubled cryptocurrency exchange JPEX, have been detained by the Taipei District Prosecutors Office on suspicion of fraud.

The arrests took place earlier today after prosecutors conducted investigations at nine locations related to JPEX’s Taiwan operations. According to the Central News Agency, Chang and Shi have been accused of violating local banking and anti-money laundering laws.

Prosecutors stated that four suspects were summoned for questioning, with two individuals surnamed Liu and Niu released on bail and after interrogation, respectively.

Launched in June 2022, JPEX actively promoted cryptocurrency products and solicited investments in Taiwan. The platform’s regional brand ambassador, singer Nine Chen, was also questioned as a witness.

Authorities have so far received over 10 complaints from Taiwanese citizens claiming to be victims of JPEX’s alleged fraudulent activities. The true scale of the exchange’s presence in Taiwan remains unclear.

Taiwan introduced anti-money laundering regulations for virtual asset providers in July 2021. However, JPEX failed to register with the Financial Supervisory Commission for AML compliance as required by law.

This latest crackdown comes after Hong Kong police arrested at least 11 people linked to JPEX last September on fraud charges. The Hong Kong Securities and Futures Commission additionally blocked the exchange’s website and mobile app.

In response to the Hong Kong investigations, JPEX strongly rejected accusations about its business model and marketing tactics. The exchange claimed authorities acted without proper review.

As the JPEX saga unfolds, prosecutors seem intent on uprooting the exchange’s presence in Taiwan and holding key figures accountable. The detention of Chang and Shi represents a significant development as authorities unravel the obscure operations of the besieged crypto platform.

With potential fraud victims continuing to come forward, JPEX faces mounting legal pressure in Taiwan. Prosecutors have signaled their resolve to enforce pertinent laws governing banking and virtual asset activities.

The crypto industry will monitor the outcome of the ongoing probes and whether further action is taken against JPEX. For now, Chang and Shi remain in custody as the prosecutorial investigation gathers momentum.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decision.

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Mutuma Maxwell

Maxwell especially enjoys penning pieces about blockchain and cryptocurrency. He started his venture into blogging in 2020, later focusing on the world of cryptocurrencies. His life's work is to introduce the concept of decentralization to people worldwide.

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