In a concerning turn of events in the cryptocurrency world, Taiwanese singer Nine Chen has been sent to the prosecutors’ office in Taipei on suspicion of aggravated fraud and violations of banking laws. This comes after authorities determined that Chen was allegedly involved in a fraud scheme linked to the now-busted Hong Kong-based cryptocurrency exchange, JPEX.
Investigation Uncovers Alleged Fraudulent Activities
According to local media reports, the Taiwan Investigation Bureau’s investigation revealed that Chen, who had reportedly received 320,000 USDT to act as JPEX’s brand ambassador last year, is suspected of engaging in fraudulent activities related to the exchange in Taiwan. The prosecutors have yet to press charges against the singer, but the case highlights the ongoing challenges in the cryptocurrency industry and the need for stricter regulatory oversight.
JPEX Exchange Busted for Alleged $204.9 Million Fraud
The investigation of Nine Chen came after Hong Kong authorities busted JPEX’s local operations last year, arresting dozens of suspects related to a HK$1.6 billion ($204.9 million) fraud case. Many investors in Taiwan were also affected by the alleged scam, prompting the authorities to widen their probe.
Regulatory Compliance Issues Surrounding JPEX
The case also raises concerns about the regulatory compliance of cryptocurrency service providers in the region. Taiwan’s Financial Supervisory Commission introduced anti-money laundering rules for virtual asset service providers in July 2021, but JPEX had not registered with the FSC for AML compliance, making its operations in the country potentially illegal.
“Taiwan requires virtual asset services providers to comply with anti-money laundering laws since the Financial Supervisory Commission introduced those rules in July 2021. JPEX, however, has not registered with the FSC for AML compliance.”
Ongoing Investigation and Singer’s Response
In October, prosecutors initially summoned Chen as a witness but later listed him as a defendant in the case. The singer has stated that the money he invested through JPEX exceeded his endorsement earnings and that his assets had lost about 15% of their value.
As the investigation continues, this case serves as a stark reminder of the importance of robust regulatory frameworks and the need for the cryptocurrency industry to prioritize transparency and accountability to safeguard investors and the public.
