Hong Kong Influencer Joseph Lam Granted Bail in JPEX Case

Joseph Lam JPEX Case Marks Major Milestone in HK Crypto Fraud

The JPEX case has taken a new turn after a Hong Kong court granted bail to influencer Joseph Lam and several others in connection with the city’s largest cryptocurrency fraud to date. The alleged HK$1.6 billion scandal has rocked Hong Kong’s growing digital asset sector and sparked renewed calls for stronger crypto regulation.

The influencer, a barrister-turned-insurance agent and social media influencer, is accused of misleading investors into putting their money into the JPEX crypto trading platform. Prosecutors allege that Lam made false claims about JPEX’s regulatory status, including suggesting that it held licenses in multiple jurisdictions and that he possessed exclusive insider information about the exchange.

Group Faces Fraud and Money Laundering Charges

Source: X

The JP-EX Crypto Asset Platform Pty Ltd case of Joseph Lam involves 16 people charged with conspiracy to defraud, fraudulently inducing investment in virtual assets and money laundering. Lam is among eight high-profile defendants, including influencers and a former television actor, who appeared in the Eastern Magistrate’s Court on Thursday.

Prosecutors told the court they plan to transfer the probe to the High Court for trial, where the accused could face harsher penalties. Magistrate Ko Wai-hung approved the application and scheduled a committal hearing for December 15.

Bail Granted to Most Defendants

In the probe of Joseph Lam, together with other influencers, Chan Wing-yee, referred to online as Chan Yee, was bonded on HK$300,000 each. They both gave in their travel documents and are required to report to the police periodically. Some of them were bailed on HK$50,000 to HK$100,000. Cheng Chun-hei, a former artist of TVB who was one of the defendants, was refused bail and is in custody.

Another seven defendants were also charged in connection with JP-EX Crypto Asset Platform Pty Ltd, six of whom were charged with money laundering and one charged with obstructing justice through the destruction of evidence. They were all bailed on a deposit of between HK 20,000 and 100,000.

JPEX Case Highlights Regulatory Gaps

The Joseph Lam case can be dated to September 2023, when the Securities and Futures Commission (SFC) of Hong Kong put JPEX on a list of suspicious and unlicensed trading platforms. A short time later, police began their investigation and over 80 individuals related to the exchange were arrested.

Officials estimated money lost by more than 2,700 investors amounted to HK$1.6 billion, the biggest crypto scam in Hong Kong. The Interpol has declared Red Notices against three suspects who are believed to have escaped the city.

The case has highlighted the weaknesses in the regulatory system of Hong Kong, only months after the city unveiled new licensing conditions for crypto exchanges. Analysts believe that the case will lead to stricter monitoring to avoid such scams as Hong Kong tries to position itself as the world's digital asset centre.