Prosecutors in charge of the JPEX fraud case in Hong Kong have obtained official permission to adjourn legal proceedings until next year, citing the urgent need to organize a vast amount of accumulated evidentiary files.4 During a hearing held this Monday at the Eastern Magistrates’ Court, it was determined that the complexity of the investigation, spanning two years, requires significant additional time for proper structuring. This decision extends the wait for thousands of victims seeking financial justice.
The next hearing has been scheduled for March 16, 2026, a date on which the group of social media influencers accused of promoting the collapsed platform will appear again. These individuals, who acted as the public face of over-the-counter (OTC) cryptocurrency trading shops, face serious charges including conspiracy to defraud and money laundering. The prosecution seeks to consolidate an airtight case given the magnitude of the reported losses.
On the other hand, seven of the eight defendants who appeared in court, including former lawyer turned influencer Joseph Lam and former actor Cheng Chun-hei, received an extension of their bail. However, Cheng will remain in custody as he did not apply for such legal benefit, staying behind bars while the process advances. The legal situation of the defendants reflects the severity with which authorities are treating the case.
Will this judicial delay affect confidence in digital asset regulation?
The scandal originally erupted in September 2023, when the Hong Kong Securities and Futures Commission (SFC) issued a critical warning noting that the platform operated without a license and made misleading claims.5 Following the collapse, more than 2,700 victims reported the inability to withdraw their funds, totaling combined losses exceeding $206 million (HK$1.6 billion). The massive financial impact turned this event into one of the largest frauds in local history.
Likewise, this incident has had profound repercussions on the region’s cryptocurrency sector, cooling public sentiment just as the government was trying to position the city as a global hub for Web3. The debacle forced regulators to drastically modify how they communicate licensing information and how they educate the public about virtual asset risks. Authorities now prioritize transparency to prevent similar schemes from proliferating in the future.
Furthermore, the police investigation has led to the arrest of more than 80 people to date, dismantling what they describe as an organized criminal syndicate that used puppet accounts and shell companies. Charges range from fraudulently or recklessly inducing others to invest, to dealing with property representing proceeds of indictable offenses under anti-money laundering laws. The web of complicity uncovered spans from media promoters to technical operators of the platform.
Finally, while the judicial process moves slowly in the courts, the international search for the alleged ringleaders continues active with Interpol red notices issued against three key men.7 It is believed that Mok Tsun-ting, Cheung Chon-cheng, and Kwok Ho-lun, the latter linked to operations in Australia, remain fugitives from justice, keeping the case open at a global level.8 The full resolution of this fraud will depend on international cooperation to capture the remaining fugitives.
