The Taipei District Prosecutors Office has detained two individuals linked to JPEX, the cryptocurrency exchange, as part of an ongoing investigation into suspected fraud. According to reports from Taiwan’s Central News Agency, the arrests are the result of alleged violations of relevant banking and anti-money laundering laws.
Arrests and Investigations
Chang Tung-Ying, the chief partner of JPEX’s Taiwan Office, and Shi Yu, an affiliated lecturer, have been taken into custody following the investigation’s progress. These arrests are part of a larger crackdown on JPEX’s operations, which have recently faced intense scrutiny due to alleged fraudulent activities.
The judicial investigation bureau has been directed to conduct probes at multiple locations, resulting in the summoning of four individuals. Among them, one suspect was released on bail while another was released after questioning. Even Nine Chen, a well-known Taiwanese singer and former brand ambassador for JPEX, has been brought in as a witness and may face possible involvement as a defendant in a lawsuit.
“The JPEX scandal is estimated to be over $213 million.”
Regulatory Compliance and Lawsuits
JPEX ventured into promoting cryptocurrency-related products and soliciting investments back in June, but the company has faced a growing list of allegations and legal actions. Taiwan introduced anti-money laundering regulations in July 2021, requiring compliance from such entities. However, JPEX failed to register with the Financial Supervisory Commission (FSC) for anti-money laundering compliance.
Taiwan also tightened regulations for foreign crypto exchanges. As previously reported, Hong Kong authorities made arrests related to JPEX’s alleged fraudulent activities. In addition to arrests, measures were taken to block JPEX’s mobile app and website.
