Investigation into JPEX Cryptocurrency Platform
Recent reports from Hong Kong reveal that law enforcement agencies are probing the cryptocurrency platform JPEX over accusations of fraud. To date, 16 individuals have faced prosecution, including one who has already appeared in court. The charges against the remaining 15 revolve around serious allegations such as conspiracy to commit fraud, money laundering, obstruction of justice, and inducing investments in virtual assets through deceptive practices, as outlined in the Anti-Money Laundering and Counter-Terrorist Financing Ordinance.
Court Proceedings and Defendants
In a session held yesterday at the Eastern District Court, these defendants were temporarily excused from entering pleas. The prosecution has requested that cases involving the first group of eight defendants be escalated to the High Court, with the subsequent hearing now scheduled for December 15.
Notably, Zheng Junxi, a former artist, has seen his bail application denied, resulting in his continued detention, while the other seven were granted bail arrangements, each set at $300,000. Among these was internet personality Lin Zuo, facing two counts: one for fraud and another for misleading others regarding investments in virtual assets.
Allegations Against Lin Zuo
Prosecution claims state that Lin Zuo is accused of misrepresentation between July 8 and September 12, 2023, which involved him either directly making or enabling false statements that induced individuals to engage in agreements regarding virtual asset transactions.
Furthermore, it has been suggested that Lin Zuo had access to confidential JPEX information not available to the general public, and he allegedly asserted that investments in specific assets via JPEX would guarantee a notable rate of return.
