JPEX Runaway Case Follow-up: Hong Kong prosecutors add money laundering charges, internet celebrity Zhu Gongzi faces 4 charges

Hong Kong prosecutors have increased charges against key figure Zhu Jiahui in the JPEX case, with the number of money laundering allegations rising to 4 and the case being transferred to the District Court, highlighting the legal risks of influencer promotion of crypto platforms.

Prosecutors escalate charges, with Zhu’s money laundering allegations rising to 4

According to Wen Wei Po, Hong Kong prosecutors continue to intensify law enforcement efforts against the JPEX scam case. Recently, they formally added 3 counts of money laundering against the well-known crypto influencer “Zhu Gongzi” Zhu Jiahui.

According to court documents, prosecutors allege that Zhu Jiahui, between 2020 and 2023, processed approximately HKD 18.78 million of suspicious funds through 4 bank accounts, suspected of knowingly or should have known that the funds involved were proceeds of criminal conduct, yet still handled them.

With the new charges, Zhu Jiahui currently faces a total of 4 counts of money laundering. The case has shifted from the initial magistrate’s court proceedings to a higher-level district court, indicating that prosecutors have positioned him as one of the key players in the case.

Case transferred to district court for trial, JPEX becomes Hong Kong’s largest crypto scam

The judiciary stated that, due to the large amount involved and the number of victims, they have sought legal advice and decided to transfer the case to the district court. The next hearing is scheduled for March 27. Zhu Jiahui remains on bail pending trial.

Investigations show that JPEX, as an unlicensed virtual asset trading platform, collapsed in 2023, causing over 2,700 investors to suffer losses totaling up to USD 206 million, making it the largest crypto asset scam in Hong Kong history. Police have so far arrested over 80 individuals related to the case, formally charged 16 suspects, and issued Interpol red notices for 3 fugitives, indicating that the case has escalated from local law enforcement to cross-border accountability actions.

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Endorsement and promotion as breaking points, regulators draw red lines for influencer roles

Investigators pointed out that JPEX was able to attract a large number of investors in a short period largely due to heavy reliance on influencers, off-platform promoters, and community outreach. Zhu Jiahui is accused of acting as an opinion leader during the platform’s operation, endorsing JPEX and promoting related services to followers without disclosing the platform’s lack of regulatory approval.

The Hong Kong Securities and Futures Commission (SFC) had previously identified high-risk signals from JPEX, including exaggerated returns and ambiguous licensing status. This criminal prosecution is seen as a formal delineation by regulators against “gray area marketing.” As the case enters the district court phase, public expectations are that this scandal will become a significant watershed in Hong Kong’s crypto regulation and influencer accountability, exerting long-term deterrence on future virtual asset promotion activities.

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This content is compiled by Crypto Agent from various sources, reviewed and edited by Crypto City. It is still in training, and may contain logical biases or informational errors. The content is for reference only and should not be considered investment advice.