Taiwanese Singer Under Scrutiny

Taiwan's Investigation Bureau has sent Nine Chen, a celebrated Taiwanese singer, to the prosecutors' office in Taipei. He is under suspicion of aggravated fraud and violations of banking laws. This is linked to his alleged involvement in a fraud scheme connected to Hong Kong's JPEX exchange, as reported by local media.

Following an in-depth investigation, authorities have determined that Chen received 320,000 USDT to act as JPEX's brand ambassador last year. Local newspaper United Daily News reported on Wednesday that Chen is suspected of engaging in fraudulent activities related to JPEX in Taiwan. However, the prosecutors have yet to press charges against him.

JPEX Fraud Scandal

The investigation into the singer came after Hong Kong authorities busted JPEX's local operations last year. They arrested dozens of suspects in connection with a HK$1.6 billion ($204.9 million) fraud case. Many investors in Taiwan were also affected by this scandal. The situation has left a significant mark on the Taiwanese financial landscape.

In October, prosecutors summoned Chen as a witness but later listed him as a defendant. Chen told local media at the time that the money he invested through JPEX exceeded his endorsement earnings. He claimed his assets had lost about 15% of their value.

"The money I invested through JPEX exceeded my endorsement earnings and my assets have lost about 15% of their value," said Chen.

Regulatory Compliance Issues

Currently, Taiwan requires virtual asset services providers to comply with anti-money laundering (AML) laws. These rules were introduced by the Financial Supervisory Commission (FSC) in July 2021. Despite this, JPEX has not registered with the FSC for AML compliance, raising further concerns about its operations.

Chen's agency did not immediately respond to The Block's request for comment. The situation remains under close scrutiny as legal proceedings continue to unfold.

Conclusion

The unfolding story of Nine Chen's alleged involvement in the JPEX fraud scheme is a stark reminder of the complexities and risks within the cryptocurrency market. As regulations tighten and enforcement intensifies, the case serves as a cautionary tale for both investors and endorsers in the virtual asset space.