Crypto Chaos: Joseph Lam and Influencers Charged in Hong Kong’s HK$1.6 Billion JPEX Scandal

TLDR

• Hong Kong cracks down on 16 suspects in HK$1.6B JPEX crypto fraud.
• Influencer Joseph Lam charged in Hong Kong’s largest crypto scandal.
• Actor Cheng Chun-hei remanded over forgery in JPEX crypto case.
• YouTubers and traders linked to JPEX face fraud and laundering charges.
• HK police seize HK$228M assets in widening JPEX crypto investigation.

Hong Kong authorities have charged 16 people in connection with the JPEX crypto scandal, the city’s largest financial fraud. The case involves losses exceeding HK$1.6 billion and over 2,700 affected individuals. The suspects, including Joseph Lam and other online personalities, now face multiple fraud and money laundering charges.

Joseph Lam Faces Trial Over Fraud and Unlicensed Promotions

Authorities charged Joseph Lam, a former barrister turned influencer, with fraud and promoting unlicensed virtual assets tied to the JPEX crypto scandal. Between July and September 2023, Lam allegedly made false claims about JPEX’s legitimacy to attract funds. He claimed the platform held multiple international licenses and had exclusive privileges.

Police reported that Lam misled people by portraying JPEX as a reliable platform despite warnings from regulators. Prosecutors stated that his promotional activities aimed to create a false sense of security around JPEX. As a result, Lam and seven others will face trial in the High Court.

The court granted Lam bail at HK$300,000, and he must report regularly and surrender his travel documents. Authorities have kept the case in the spotlight due to its large-scale financial damage. The court scheduled a committal hearing for December 15 to proceed with the transfer to a higher court.

Actor Cheng Chun-hei Remanded Amid Forgery and Conspiracy Claims

Cheng Chun-hei, a former TVB actor, was denied bail due to the serious nature of his charges in the JPEX crypto scandal. Authorities accused him of promoting the platform from August 2021 to October 2023 using false endorsements. He also allegedly submitted forged documents to the Inland Revenue Department.

The court noted the risk of tampering with evidence and ordered him to remain in custody pending trial. Prosecutors included charges of conspiracy to defraud and falsifying employer tax forms to mislead authorities. His case will also be transferred to the High Court due to its complexity and scale.

Cheng is among those identified as high-risk due to direct links to JPEX operations. The allegations indicate a coordinated effort to deceive the public using false investment claims. His role in the scheme highlights how public figures were used to gain trust and influence decisions.

YouTubers, Trainers and Traders Caught in Expanding Legal Net

Authorities charged several other public figures and OTC crypto traders connected to the JPEX crypto scandal. YouTubers Chan Wing-yee and Chu Ka-fai, along with fitness coach Felix Chiu, were released on bail. They face charges including fraud and money laundering related to promotional activities and fund handling.

Police also arrested crypto shop operators and retail workers suspected of helping launder HK$195 million in proceeds. Nine defendants allegedly handled these illegal funds, while two others destroyed key evidence. Interpol issued Red Notices for three suspects who fled the city to avoid prosecution.

Police confirmed that 80 people have been arrested since the JPEX crypto scandal surfaced in September 2023. Authorities have seized HK$228 million in assets linked to the case. The prosecution continues identifying core members and support networks involved in the unregulated operation.

The post Crypto Chaos: Joseph Lam and Influencers Charged in Hong Kong’s HK$1.6 Billion JPEX Scandal appeared first on CoinCentral.