Hong Kong Court Delays $206M JPEX Crypto Fraud Case as Regulators Intensify Oversight

Hong Kong Prosecutors have asked for more time to organize the sprawling evidence collected during the two-year investigation.

The case will be adjourned until March 16, 2026, where the group of influencers accused of promoting JPEX and acting as the public face of its over-the-counter cryptocurrency trading shops will fight for their case.

The defendants face serious charges including conspiracy to defraud, fraudulent inducement of investment in virtual assets, and handling proceeds of crime.

Seven of the eight defendants were released on bail under existing conditions. Those charged include former lawyer and influencer Joseph Lam, YouTuber Chan Wing-yee, former TVB actor Cheng Chun-hei, and fitness instructor Chiu King-yin. Cheng is the only defendant who have not applied for bail and remains in custody pending the next hearing.

Hong Kong Tightens Crypto Oversight Following JPEX Collapse

JPEX collapsed in September 2023, after the exchange caught the attention of the Securities and Futures Commission (SFC) who accused the exchange of operating without a license and making misleading claims.

Users reported frozen withdrawals, and investigators say the fallout affected over 2,700 victims, resulting in combined losses exceeding HK$1.6 billion.

In addition to Hong Kong, JPEX has also promoted its services and had victims in the Philippines and Taiwan.

Authorities charged 16 suspects on November 5, 2025, including six alleged core members of the JPEX network, as part of a broader crackdown on crypto over-the-counter (OTC) shops linked to the platform. To date, more than 80 people have been arrested in connection with the investigation.

The JPEX case had deeper implications on Hong Kong's crypto landscape. Following the exchange collapse, the SFC strengthened its oversight of crypto licensing and boosted education about virtual assets risks. Dampened publci

The scandal has also dampened public sentiment toward cryptocurrencies at a time when the government was trying to promote the city as a hub for Web3 and digital assets.

Authorities are still pursuing three ringleaders: Mok Tsun-ting (27), Cheung Chon-cheng (30), and Kwok Ho-lun (28), all Hong Kong nationals with Interpol red notices. Kwok, reportedly linked to JPEX’s Australian operations, remains unaccounted for.

The next hearing in March 2026 will test whether prosecutors are ready to formally indict the defendants, marking a critical step for both justice and regulatory clarity in Hong Kong’s crypto market.

Hong Kong Moves On From The JPEX Saga

The JPEX scandal highlights a pivotal moment for Hong Kong’s cryptocurrency sector. While the court proceedings unfold, the case underscores the importance of stringent licensing, investor education, and careful oversight of online promotions.

For regulators and investors alike, the message is clear: unchecked platforms and influencer marketing can amplify risks, but proactive regulation can help restore trust and stability in the evolving Web3 ecosystem.