In Taiwan, law enforcement authorities have apprehended two individuals associated with the beleaguered cryptocurrency exchange, JPEX. The detained persons are Chang Tung-Ying, the chief partner of JPEX’s Taiwan Office, and Shi Yu, a lecturer connected to the exchange. According to local reports, prosecutors have enlisted the local justice investigation bureau to conduct inquiries at nine locations and have subsequently summoned four suspects for questioning.
One of the suspects, surnamed Liu, was released on bail amounting to NT$50,000 [equivalent to $1,550], while another individual, surnamed Niu, was released after being interrogated. Reports indicate that JPEX commenced its promotion of cryptocurrency-related products and solicitation of investments in June. The precise scale and reach of JPEX’s operations in Taiwan remain uncertain, but local media outlets have reported that over ten victims affected by JPEX’s activities have filed lawsuits related to the case.
It is important to note that Taiwan has regulations in place requiring virtual asset service providers to adhere to anti-money laundering laws, a mandate introduced by the Financial Supervisory Commission in July 2021. However, JPEX failed to register with the FSC for anti-money laundering compliance.
JPEX, a trading platform based in Dubai, was compelled to cease its operations after the Hong Kong police received 2,538 reports linked to the scandal involving the exchange. In connection with this case, Hong Kong police arrested 28 individuals, including a prominent cryptocurrency influencer. As reported by TronWeekly, investors incurred losses amounting to approximately HK$1.56 billion.
Taiwan’s Popular Singer To Serve As Witness
What particularly drew attention in Taiwan was the involvement of popular singer-songwriter Chen Lingjiu, who was appointed as the spokesperson for JPEX’s Taiwanese office. This association garnered widespread attention globally.
Per the latest updates, the Taipei District Prosecutor’s Office interviewed Chen Lingjiu as a witness. Following the interrogation, he was allowed to return without being detained. Chen Lingjiu, in media interviews, stated, “Even if I received endorsement fees, my investment in this platform has exceeded the endorsement fees.” He disclosed that the asset loss amounted to about 15%. He emphasized that he had learned a valuable lesson and would exercise caution in future endorsements to avoid repeating similar mistakes.