Cryptocurrency Exchange JPEX Under Investigation for Fraud, Endorsement Artist Chen Lingjiu Summoned

Taiwanese Singer-Songwriter Faces Scrutiny Over Alleged Involvement in JPEX Scandal.

Cryptocurrency Exchange JPEX Under Investigation for Fraud, Endorsement Artist Chen Lingjiu Summoned
Photo by Timo Volz / Unsplash

The cryptocurrency exchange JPEX finds itself embroiled in a scandal as it faces investigation for its alleged involvement in fraudulent activities. The Beijing Inspection Bureau has been actively pursuing this case, recently interviewing JPEX's chief partner in Taiwan, surnamed Zhang, who has been banned from further communication following the interrogation, according to report by CNA.

The situation took an even more dramatic turn as investors filed a lawsuit against popular Taiwanese singer-songwriter Chen Lingjiu, who had previously endorsed JPEX. The allegations claim that his endorsement was a part of the fraudulent activities associated with the exchange. As a result, the Beijing Prosecutor's Office is planning to summon Chen Lingjiu as a defendant to explain his role in this unfolding controversy.

In another significant development, Hong Kong police recently arrested the individual in charge of JPEX, as well as other individuals linked to the cryptocurrency exchange. The investigation is homing in on potential fraud, with JPEX suspected of engaging in illegal operations. JPEX initially gained attention due to its endorsement by Chen Lingjiu, which garnered considerable interest from the public.

Chen Lingjiu has already been interviewed by the Taipei District Prosecutor's Office, but in the role of a witness. Following the interrogation, he was released without bail. During a subsequent media interview, Chen Lingjiu revealed that, despite receiving endorsement fees, his investment in the platform resulted in a loss of approximately 15%. He expressed regret and pledged to be more diligent in choosing future endorsements to prevent making similar mistakes.

The investigation began after reports surfaced indicating that individuals, including Zhang, were allegedly involved in encouraging the public to invest in financial products such as virtual currency JTC coins. These individuals were also suspected of soliciting investments and receiving payments from undisclosed sources at seemingly disproportionate remuneration. In response, the Beijing Prosecutor's Office dispatched nine search groups to conduct interviews with Zhang Nan and four others. After these hearings, Zhang Nan and a lecturer named Shi were detained without permission. A defendant named Liu posted bail of NT$50,000, and one individual was asked to return.

Notably, some victims have accused Chen Lingjiu of various financial crimes, including money-sucking, violation of banking laws, and fraud. The Beijing Prosecutor's Office will further investigate the case and summon the defendant as necessary to provide explanations.

This ongoing investigation is sending ripples throughout the cryptocurrency and endorsement industries, underscoring the need for increased transparency and accountability in such collaborations. As the case unfolds, further details are expected to emerge, shedding more light on the extent of JPEX's involvement and Chen Lingjiu's role in this complex and evolving controversy. Stay tuned for updates as the story continues to develop.