JPEX Fraud Case: Lin Zuo and Eight Others Face Charges in Hong Kong crypto Scheme
Hong Kong – A sweeping fraud and money laundering case involving the virtual asset trading platform JPEX has reached a critical stage, wiht nine individuals, including prominent figure Lin Zuo, facing criminal charges. The case, which centers around allegations of false claims and deceptive practices, is set to be transferred to the High Court on December 15th for trial.
The first appearance in the Eastern District Magistrates’ court on Thursday, November 6th, facing accusations of fraud, conspiracy to defraud, and money laundering totaling over 112 million yuan (approximately $15.5 million USD).
According to the charges, the defendants allegedly engaged in a scheme to induce investors into virtual asset agreements through false or reckless misrepresentations. These included claims that JPEX possessed valid licenses to operate in the cryptocurrency space and guarantees of specific returns on investments made through the platform. The prosecution alleges these statements where designed to profit the defendants at the expense of unsuspecting investors.
“The defendants are accused of making or allowing others to make false statements to induce investment,” a senior official stated.
Currently, the defendants are not required to enter a plea. however, with the exception of Zheng Junxi, all seven other defendants, including Lin Zuo, have been granted cash bail under strict conditions – they are prohibited from leaving Hong Kong and contacting any potential prosecution witnesses.
Key Figures and Allegations
The eight defendants are: Zheng Junxi (31), Xiao Yingqian (28), Lin Zuo (35, reported as unemployed), Chen Yingyi (38), Ou zhuoji (31, store assistant), Zhao Jingxian (25, fitness coach), Liang qixiang (31, unemployed), and He Jiwen (28). The timeline of alleged offenses spans from January 2020 to December 2023, highlighting the prolonged nature of the alleged scheme.
Zheng Junxi faces two counts of “conspiracy to defraud,” alleging a plot to deceive investors by falsely claiming JPEX held licenses in multiple jurisdictions, offered guaranteed returns, collaborated with parent companies, and would jointly issue a Visa card. he is also accused of conspiring to defraud the Inland Revenue Department by submitting falsified tax returns.
lin Zuo is charged with one count of “fraud” and an alternative charge of “fraudulently or recklessly inducing others to invest in virtual assets.” The charges allege that Lin Zuo profited from the scheme, successfully withdrawing assets from JPEX while possessing inside facts unavailable to the general public.
This case marks the first prosecution in Hong Kong under the Anti-Money Laundering and counter-Terrorist Financing Ordinance for the specific crime of “fraudulently or recklessly inducing others to invest in virtual assets.” Xiao Yingqian, Lin Zuo, chen Yingyi, Ou zhuoji, and Liang Qixiang each face nine counts of this charge. Additionally, Xiao Yingqian, Ou Zhuoji, Zhao Jingxian, and He Jiwen are collectively charged with 21 counts of “dealing with property known or believed to represent proceeds from indictable crimes,” related to the alleged laundering of over 112 million yuan.
Police Investigation and International Pursuit
The Commercial Crime Investigation Bureau (CCIB) of the Hong Kong Police Force has been actively investigating the JPEX case, having arrested a total of 80 individuals to date. Sixteen have been criminally prosecuted, with 15 appearing in court this week. Authorities have indicated that further prosecutions are possible.
“We do not rule out the next round of prosecutions,” a police spokesperson confirmed.
Furthermore,the CCIB,in collaboration with Interpol,has issued “red notices” for three individuals believed to be absconding overseas,signaling an international effort to bring all those involved to justice.
The case, filed under case number ESCC2864/2025, serves as a stark warning about the risks associated with unregulated virtual asset trading platforms and the potential for complex fraud schemes within the burgeoning cryptocurrency market. The upcoming High Court trial is expected to shed further light on the intricacies of the alleged JPEX fraud and its impact on investors.
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