JPEX Crypto Fraud Escalates as Influencer Faces New Money Charges

TLDR

• Influencer Chu Ka-fai faces four total charges in the ongoing JPEX crypto fraud case.

• He allegedly laundered HK$18.78M across four digital bank accounts.

• The case, involving over $206M in losses, affects 2,700+ investors.

• Court proceedings will move to District Court; next hearing is March 27.

Authorities in Hong Kong have filed additional charges in one of the city’s most extensive cryptocurrency fraud investigations. Prosecutors added three more counts of money laundering against influencer Chu Ka-fai, also known as “Mr. Zhu,” tied to the collapsed JPEX exchange.

The amended charges were announced during a court session at the Eastern Magistrates’ Court on January 2. Prosecutors claim that between November 2020 and August 2023, Chu laundered approximately HK$18.78 million across accounts at ZA Bank, Mox Bank, Livi Bank, and WeLab Bank.

He is now charged with a total of four counts of money laundering and remains on bail as the case advances to a higher court.

JPEX Exchange Case Transferred to District Court

Due to the seriousness of the case and the amount involved, the Department of Justice has confirmed plans to move the proceedings to the District Court. Magistrate Lam Tsz-kang adjourned the case until March 27 to allow time for the preparation of legal transfer documents.

The prosecutors allege that Chu either knew or should have known the funds were proceeds from criminal activity. Despite this, they say he continued to handle and transfer the funds over a period of nearly three years.

The decision to escalate the case aligns with increased enforcement against unlicensed cryptocurrency platforms operating without proper registration in Hong Kong.

Part of a Wider Investigation Into JPEX Fraud

The charges against Chu are part of a broader investigation into the collapse of the JPEX crypto trading platform. Authorities believe the platform defrauded over 2,700 investors, resulting in more than $206 million in total losses.

JPEX was not licensed to operate in Hong Kong. However, it used online influencers, including Chu and others, to promote its services and attract investors. Police have made more than 80 arrests in connection with the case.

Sixteen people, including public figures and internet personalities, have been officially charged. Interpol has also issued red notices for three suspects believed to have left Hong Kong.

Enforcement Tightens Against Unlicensed Crypto Promotion

The JPEX case has prompted Hong Kong regulators to step up scrutiny of crypto promotions. The Securities and Futures Commission had warned the public about the platform before its collapse, citing exaggerated return promises and misleading licensing claims.

Officials say the platform’s marketing strategy heavily relied on social media promotion, raising concerns over influencer responsibility. Authorities continue to monitor related activities and investigate others tied to the case.

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