A Hong Kong court has released bail for influencer Joseph Lam and at least 13 others involved in a cryptocurrency trading platform, JPEX, which is currently the city’s largest crypto fraud case. The scandal is estimated to involve HK$1.6 billion.
Lam is one of the most prominent figures among a group of eight individuals, including social media influencers and an ex-actor, who appeared in the Eastern Magistrate’s Court on Thursday under police custody. They are facing various charges, such as conspiracy to defraud, fraudulently or recklessly inducing others to invest in virtual assets, and money laundering, linked to the alleged JPEX fraud scheme.
The group is part of 16 people charged by the police, more than two years after the investigation into JPEX began and the first arrests were made in September 2023. Lam, who transitioned from being a barrister to an insurance agent and then a crypto influencer, is accused of committing fraud and faces an alternative charge related to inducing others to invest in virtual assets.
The 35-year-old is alleged to have deceived people into investing in JPEX with false claims, such as the platform having licenses in multiple jurisdictions and possessing exclusive information about it between July and September 2023. Lam was seen arriving at the court in a police vehicle on Thursday and was represented by Senior Counsel Cheng Huan during the hearing.
Among the other eight individuals in the group were Chan Wing-yee, 38, known as “Chan Yee” on YouTube, former TVB actor Cheng Chun-hei, 31, and several over-the-counter trading house operators and influencers. Prosecutors stated they would apply for the eight to be committed to the High Court for trial, where they could face harsher penalties. A committal hearing was scheduled for December 15.
Magistrate Ko Wai-hung approved the date and granted bail to seven defendants, including Lam and Chan, with conditions such as surrendering their travel documents and regularly reporting to a designated police station. Lam and Chan each paid HK$300,000 in cash for the court bail. Cheng was denied bail and remained in custody. Others agreed to pay cash ranging from HK$50,000 to HK$100,000 along with other conditions for bail.
In addition to the eight, seven other individuals also appeared before the magistrate on Thursday to face charges related to JPEX. One of the 16 charged, Tang Lap-shun, had already been brought to court before Thursday, according to police.
Six of the seven faced money laundering charges for allegedly using their bank accounts to handle criminal proceeds, while one was accused of perverting the course of justice for allegedly destroying evidence related to JPEX. All seven were granted bail with cash payments ranging from HK$20,000 to HK$100,000. They also had to surrender their passports and report regularly to the police.
The JPEX scandal emerged in September 2023 when the Securities and Futures Commission labeled the platform as “suspicious” and declared it unregulated. Police intervened, leading to the arrest of 80 people connected to JPEX since then. On Wednesday, the police mentioned that apart from the 16 people already charged, others arrested remained under investigation.
Interpol has issued a Red Notice for three men suspected to be key players in the JPEX case who have fled the city—Mok Tsun-ting, 27, Cheung Chon-cheng, 30, and Kwok Ho-lun, 28.
Over 2,700 individuals have reported being victims of JPEX, with total losses exceeding HK$1.6 billion, according to authorities. The JPEX case has raised concerns about Hong Kong’s approach to digital assets and highlighted regulatory gaps, just months after the city introduced rules requiring crypto exchanges to be licensed and meet investor protection standards.