LUCKNOW (CoinChapter.com) — Taiwanese prosecutors have found two new suspects in the ongoing investigation of the JPEX scandal. Chief partner of JPEX’s Taiwan Office, Chang Tung-Ying, and JPEX lecturer Shih Yu-sheng, is now under scrutiny for alleged fraud.
The Taipei District Prosecutors Office (TDPO) has formally requested their custody, citing violations of the Banking Act and the Money Laundering Control Act, according to a local News report on Nov. 9.
Who Are These JPEX Scandal Suspects
Prosecutors conducted investigations at nine locations linked to the JPEX scandal. Authorities summoned Chang Tung-ying, along with three other suspects. One, surnamed Liu, was released on NT$50,000 bail, while Niu was released after questioning.
The charges revolve around violations that have rattled the cryptocurrency exchange landscape.
Nine Chen, a Taiwanese celebrity and former JPEX brand ambassador, was summoned by prosecutors. Initially called as a witness, Nine Chen is now named as a defendant in the case, according to local news sources. More than ten victims reportedly filed lawsuits related to the JPEX scandal in Taiwan.
Despite Taiwan’s anti-money laundering regulations for virtual asset service providers introduced in July 2021, JPEX remains unregistered with the Financial Supervisory Commission (FSC) for AML compliance.
It halted services in mid-September 2023, citing a liquidity crisis triggered by alleged “unfair treatment” from Hong Kong institutions. The sudden implosion fueled allegations about JPEX misleading investors that it had applied for a crypto trading license.
JPEX Faces Legal Turmoil in Hong Kong
Hong Kong authorities launched an investigation when it received over 2,000 complaints from JPEX users claiming losses of nearly $180 million. Financial regulators in Hong Kong, Taiwan, and beyond are taking swift action to protect investors.
As of Sep. 25, law enforcement has arrested at least 11 suspects in the JPEX scandal. However, the alleged masterminds behind the scandal remain at large. The financial regulator and police in Hong Kong also blocked JPEX’s mobile app and website.
“Since Sep. 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 stated.
