JPEX Exchange Fraud Case to be Sentenced in March Next Year! Lin Zuo Chen Yi 8 Influencers Postponed for Re-trial

JPEX Exchange Fraud Case: 8 Defendants Including Influencers Lin Zuo, “Chen Yi” Chen Yingyi, etc., Charged with Conspiracy to Defraud, Money Laundering, and “Using Deception or Ignoring the Truth to Induce Others to Invest in Virtual Assets,” involving approximately HKD 110 million. Magistrate Qu Lihui approved the prosecution’s application to adjourn until March 16, 2026, during which 7 defendants will continue to be released on bail under the original conditions.

Roles and Charges of the 8 Influencer Defendants

The identities of the 8 defendants involved in the JPEX exchange scam are diverse, reflecting the extensive infiltration of this scam network. Lin Zuo (35) is a well-known Hong Kong YouTuber with a large fan base, who has promoted JPEX exchange in multiple videos. “Chen Yi” Chen Yingyi (38) is also a social media influencer with numerous followers on Instagram. “Xiangxiang” Liang Qixiang (31) is a YouTuber known for beauty and lifestyle content. Zheng Junxi (31) is a former TVB actor who has appeared in several dramas.

The other defendants include Xiao Yingqian (28), store assistant Qu Zhuoji (31), fitness trainer Zhao Jingxian (25), and He Jiwen (28). These defendants played various roles within the JPEX scam network, from frontline promotion to logistical support, forming a complete fraud chain.

The charges include conspiracy to defraud, fraud, using deception or ignoring the truth to induce others to invest in virtual assets, and handling property known or believed to be proceeds of indictable offenses. These charges cover the entire criminal process from promoting scam platforms, inducing investments, to money laundering. Notably, the charge of “using deception or ignoring the truth to induce others to invest in virtual assets” is a specific offense under Hong Kong law, designed especially for virtual asset scams.

Key Elements of the JPEX Exchange Scam Case

Involved Amount: approximately HKD 110 million, with over 2000 victims

Legal Breakthrough: Hong Kong police for the first time prosecuted virtual asset scams under the Anti-Money Laundering Ordinance, with 16 people charged

Influencer Roles: Using social media influence to promote unlicensed exchanges, inducing followers to invest

Bail Status: 7 persons granted bail (not allowed to leave Hong Kong, must surrender travel documents), 1 person remanded in custody

Methods of the JPEX Exchange Scam and Regulatory Gaps

The case emerged in September 2023. The Hong Kong Securities and Futures Commission (SFC) pointed out that JPEX, without applying for relevant licenses in Hong Kong, actively promoted its services, with suspicious operational methods involving scams. JPEX’s scam techniques are typical: they first conduct large-scale promotion via influencers and social media, leveraging KOL credibility to lower investors’ guard. Then, they promise high returns and low-risk investment opportunities to attract retail investors unfamiliar with virtual assets. Third, after accumulating large sums of money, they suddenly raise withdrawal thresholds or directly shut down withdrawal functions, trapping investors’ funds.

The JPEX case exposes regulatory loopholes in Hong Kong’s virtual asset supervision. Although the SFC implemented a Virtual Asset Service Provider (VASP) licensing regime in June 2023, JPEX was still able to recruit customers extensively through influencer promotion without a license. This reveals a time lag between enforcement and market reality, providing room for scam platforms to operate. The SFC issued warnings before the incident, but JPEX had already amassed numerous victims and funds.

The police’s first use of relevant laws to charge 16 individuals marks a shift in Hong Kong law enforcement’s attitude toward virtual asset scams. Previously, similar cases were handled mainly as traditional fraud offenses, but the unique nature of virtual assets makes tracing funds and collecting evidence extremely difficult. The application of anti-money laundering regulations provides stronger legal tools, especially with the charge of “using deception or ignoring the truth to induce others to invest in virtual assets,” directly targeting influencer promotion of unlicensed exchanges.

Influencer Promotion Responsibility and Legal Disputes

Lin Zuo appeared in court accompanied by his girlfriend Yumi and friend Van Der Wei, looking serious. Lin Zuo’s mother, Wang Lini, also attended the court. After the hearing, Lin Zuo left the court with his lawyer and senior barrister Qing Hong, briefly stopping to smile for photos. This composed demeanor contrasts with the seriousness of the case, sparking public discussion on the boundaries of legal responsibility for influencers.

The core legal controversy in the JPEX case is whether influencer promotion constitutes “using deception or ignoring the truth to induce” others? If influencers indeed knew the platform was unlicensed or suspicious of scams and continued to promote it for profit, they could be charged with fraud. However, if they claimed ignorance and only accepted commercial cooperation, how should legal responsibility be determined? The legal term “ignoring the truth” is crucial for handling this gray area—if defendants claim they did not know but had reasonable grounds to suspect and chose to ignore, they could still be criminally liable.

The case has been postponed to March 16, 2026, for further proceedings. The prosecution needs time to organize extensive documentation. Given the large number of involved parties, the significant amount involved, and the complex virtual asset transaction records, the workload is substantial. The outcome of this trial will set an important precedent for Hong Kong’s virtual asset regulation and influencer promotion responsibilities, with far-reaching industry implications. Investors should learn from this case: all investment decisions should be based on independent research and risk assessment, not blind trust in influencer recommendations.