JPEX crypto scam suspect faces money laundering charges

A former Hong Kong actor accused in the sprawling JPEX cryptocurrency fraud case appeared in court on charges of laundering nearly HK$18 million in illicit proceeds linked to the scandal.

The 31-year-old defendant, Cheng Chun-hei, faced initial proceedings yesterday in connection with the JPEX investigation, where he is alleged to have conspired with others, including Kwok Ho-lun, to deceive investors.

Prosecutors claim the group falsely promoted JPEX as a platform offering guaranteed returns on specified virtual assets, misrepresented partnerships with listed companies, and fabricated a collaboration with Visa to issue co-branded cards. 

Cheng also faces charges of conspiring to defraud the Inland Revenue Department by submitting a falsified tax return purportedly signed by Guo.

In a related money laundering case heard today at Eastern Magistrates' Court, Cheng was charged with four counts involving the transfer of approximately HK$18 million through four different bank accounts.

Authorities described the funds as proceeds of crime tied to the JPEX operation and sought to have the matter transferred to the High Court for trial. 

The presiding magistrate, Ko Wai-hung, adjourned the hearing until December 15 for further directions.

Prosecutors pushed to revoke Cheng's bail in the laundering case, but his defense team successfully argued to maintain the existing conditions. 

However, Cheng remains in custody due to the ongoing JPEX proceedings. 

To date, police have prosecuted 16 individuals in the broader JPEX fraud investigation, which has ensnared hundreds of investors and prompted widespread scrutiny of unlicensed virtual asset platforms in the city.