JPEX fraud case update, prosecutors apply to transfer the first batch of 8 defendants to the Hong Kong High Court for trial

The police are investigating the cryptocurrency trading platform JPEX for suspected fraud. So far, 16 people have been prosecuted, one of whom has already appeared in court. The remaining 15 individuals are charged with conspiracy to commit fraud, money laundering, obstruction of justice, and under the "Anti-Money Laundering and Counter-Terrorist Financing Ordinance" for "fraudulently or recklessly inducing others to invest in virtual assets." Yesterday afternoon, they appeared in multiple cases at the Eastern Magistrates' Court, and the 15 defendants do not need to plead at this time.

The prosecution has applied to transfer the case of the first eight defendants to the High Court and has postponed the hearing until December 15. Among the eight defendants in the first case, except for former artist Zheng Junxi, whose bail application was rejected by the court and must remain in custody, the other seven have been granted bail pending trial, with internet celebrity Lin Zuo and Chen Yingyi each bailed out for 300,000 HKD. Lin Zuo is charged with one count of fraud and an alternative charge (i.e., "fraudulently or recklessly inducing others to invest in virtual assets"). The charges allege that between July 8 and September 12, 2023, he falsely represented or allowed others to make false statements and made fraudulent or reckless false statements to induce others to enter into agreements regarding the acquisition, disposal, subscription, or underwriting of virtual assets. The prosecution pointed out that Lin Zuo is accused of being able to successfully withdraw assets from JPEX and possessing internal information that ordinary investors cannot access, claiming that investing in designated virtual assets through JPEX could yield a specific percentage of returns.