Executives from Taiwan’s JPEX exchange were arrested as part of a cryptocurrency fraud investigation, demonstrating Taiwan’s strict financial compliance laws.
Taiwan’s legal authorities have detained prominent JPEX cryptocurrency exchange members embroiled in legal disputes. Chang Tung-Ying, the principal partner, and Shi Yu, an instructor associated with JPEX, were detained by the Taipei District Prosecutors Office on suspicion of violating banking and rigorous anti-money laundering laws.
Authorities raided nine locations and questioned four people as the investigation intensified. But two Liu and Niu surnames managed to get out, the first on bail and the second after questioning.
Notably, It was determined that JPEX’s problems started in June when it started to solicit investments for cryptocurrency products. Nine Chen, a well-known Taiwanese singer once linked to JPEX as a brand ambassador, was called in to testify during the continuing investigation.
Chen, on the other hand, might become a defendant based on the course of the case. Chen’s legal status would change based on how much of a participation he had.
In the meantime, over 10 people have filed lawsuits against JPEX, alleging damages due to the exchange’s actions. Furthermore, from mid-2021, the island government has required virtual asset service providers to comply with anti-money laundering regulations.
In spite of this, JPEX doesn’t seem to have registered with the Financial Supervisory Commission for this kind of compliance. Since Hong Kong authorities shut down JPEX’s activities there in September, the exchange’s problems are not limited to Taiwan.
Eleven people were detained, and JPEX’s internet access points were shut down. JPEX refuted the accusations made by the Hong Kong Securities and Futures Commission, arguing that they were unfounded and premature.
The cryptocurrency community is closely following the investigation’s developments. The stringent measures taken by Taiwanese authorities establish a precedent in the realm of digital currencies and highlight the nation’s dedication to maintaining financial and regulatory compliance.
