Taiwanese singer Nine Chen investigated for JPEX crypto fraud

The investigation into the JPEX cryptocurrency scandal continues after Taiwanese prosecutors identified new alleged suspects in the case.

The Taiwan Investigation Bureau has referred Nine Chen, a well-known Taiwanese singer, to the Taipei Procuratorate on suspicion of serious fraud and violations of banking law. He was previously accused of being involved in a fraud scheme related to the Hong Kong stock exchange JPEX, local media reported.

Authorities found that Chen, who allegedly received 320,000 USDT to serve as a JPEX brand ambassador last year, is suspected of being involved in fraudulent activities related to JPEX in Taiwan, United Daily News reported on Wednesday. Prosecutors have not yet filed charges against Chen.

The investigation into Chen began after Hong Kong authorities dismantled JPEX’s local operations last year, leading to the arrest of numerous suspects in a HK$1.6 billion (US$204.9 million) fraud scheme that also involved many investors in Taiwan.

In October, prosecutors summoned Chen as a witness but later classified him as a defendant. Chen told local media that his investments through JPEX exceeded his advertising revenue and that his assets had lost about 15 percent of their value.

During their investigation, Taipei prosecutors raided nine locations linked to JPEX. They summoned Chang and three other people as suspected suspects. Chang and JPEX lecturer Shih Yu-sheng, also known as Shi Yu, were identified as suspects in the case for violating the Banking Act and the Anti-Money Laundering Act.

The other defendants, including JPEX salesmen Liu Chien-fu and Niu Keng-sheng, were released. According to the report, Liu was released on bail of 50,000 New Taiwan dollars (US$1,550), while Niu, a registered person in charge of JPEX Taiwan, was released after questioning.

Meanwhile, authorities in Hong Kong are actively pursuing other fugitives in connection with the case. Those arrested are accused of using misleading advertisements and illegal methods to trick victims into opening accounts and investing on the platform. Interestingly, one suspect was reportedly caught attempting to destroy documents using paper shredders and bleach in a bathtub in an apartment in an attempt to conceal evidence in this complex investigation.

In September, the city’s Securities and Futures Commission (SFC) surprisingly mentioned JPEX in a public warning, accusing the company of suspicious practices and misleading advertising. This led to a number of arrests, including prominent influencers linked to the platform. Subsequently, over-the-counter exchanges linked to JPEX were raided and the company’s website in Hong Kong was blocked.

While JPEX claims it has applied for a license to operate as a regulated platform, the SFC, for its part, dismissed the news report and said it has been investigating the platform since 2022 on suspicion of fraud. In response to the critics, the regulator will publish lists of licensed virtual asset trading platforms (VATPs) that are in the application process and are no longer operating. In addition, the regulator will maintain a list of “suspect VATPs” on its website.