HomeNewsTaiwan Tightens Noose in JPEX Cryptocurrency Scandal

Taiwan Tightens Noose in JPEX Cryptocurrency Scandal

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  • Taiwan’s prosecutors are intensifying their investigation into the JPEX cryptocurrency exchange scandal, identifying new suspects for alleged fraud.
  • Chang Tung-ying, the chief partner at JPEX’s Taiwan office, and lecturer Shih Yu-sheng are now in the spotlight for potential violations of banking and anti-money laundering laws.

In the latest developments surrounding the collapsed cryptocurrency exchange JPEX, Taiwan’s legal forces have reportedly pinpointed new figures suspected of fraudulent activities. This news comes as the Taipei District Prosecutors Office (TDPO) specifically seeks to place Chang Tung-ying, the chief partner at JPEX’s Taiwanese branch, under arrest.

Investigation Escalation

According to TVBS News, Taipei’s prosecutors carried out searches across nine locations linked to JPEX, bringing Chang and three others into questioning. The focus has sharpened on Chang and Shih Yu-sheng, a lecturer associated with JPEX, who are suspected of breaching the Banking Act and Money Laundering Control Act.

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While other associated defendants, such as salespersons Liu Chien-fu and Niu Keng-sheng, were either released on bail or after questioning, the net has widened to include Taiwanese celebrity Nine Chen. Chen, who previously endorsed JPEX as a brand ambassador, was summoned not just as a witness but as a defendant, marking a significant turn in the investigation.

This series of legal maneuvers underscores the deepening crisis that has befallen JPEX. In September 2023, the exchange ceased operations amid a so-called liquidity crunch, prompting widespread allegations of deceptive conduct towards investors. Accusations include false claims of securing a crypto trading license among other operational discrepancies.

The ramifications of JPEX’s sudden service suspension have been profound, leading to over 2,000 complaints from users who allege nearly $180 million in losses. These events have not only shaken the confidence of cryptocurrency investors in Taiwan but also caught the attention of financial authorities in Hong Kong and beyond, catalyzing new protective regulations for investors.

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As the case unfolds, at least 11 individuals connected to JPEX have been detained since September 25, with the main orchestrators of the scheme still at large. The legal pursuit in Taiwan is a clear indicator of the growing intolerance for financial misconduct in the cryptocurrency domain, signaling a stricter oversight environment in the future.

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