The unraveling of cryptocurrency exchange JPEX continues as Taiwanese prosecutors have reportedly identified a new suspect in the case. The Taipei District Prosecutor's Office (TDPO) has requested the detention of Zhang Dongying, chief partner of JPEX's Taiwan office, on suspicion of fraud, according to local television channel TVBS News on November 9. As part of the JPEX investigation, Taipei prosecutors conducted searches at nine locations and summoned Zhang and three other alleged suspects. Authorities have identified Zhang and JPEX instructor Shi Yusheng for suspected violations of banking laws and money laundering control laws.
While Zhang and Shi are facing legal action, other defendants, including JPEX salespeople Liu Jianfu and Niu Gengsheng, were released. Liu was released on bail of NT$50,000 (US$1,550), and Niu, the head of JPEX Taiwan registration, was released after interrogation. The report also noted that Taiwanese celebrity and singer Chen Jiu, who served as a brand ambassador for JPEX, was summoned by prosecutors. Initially named as a defendant, Chen Jiu was called to testify as a witness, according to reports.
Once a thriving cryptocurrency exchange, JPEX abruptly halted some services in mid-September 2023, citing "unfair treatment" by multiple institutions in Hong Kong, which triggered a liquidity crisis. The sudden collapse raised accusations that JPEX misled investors by falsely claiming it had applied for a cryptocurrency trading license, among other issues. JPEX's downfall turned into a major industry scandal, prompting Hong Kong authorities to launch an investigation. More than 2,000 complaints were filed by JPEX users reporting losses of nearly $180 million. The incident has raised concerns among financial regulators in Hong Kong, Taiwan, and other countries, leading to new measures to protect investors from similar incidents and losses.
