Hong Kong JPEX Scandal Deepens: Influencer ’Zhu Gongzi’ Faces Fresh Charges in HK$18.8 Million Money Laundering Investigation

Another crypto influencer gets tangled in regulatory nets—this time in Hong Kong's escalating JPEX probe.

The Charges Stack Up

Authorities slapped the social media figure, known online as 'Zhu Gongzi,' with additional allegations. The core of the case? Tracing the flow of a cool HK$18.8 million. It's a stark reminder that while the blockchain is transparent, the movement of funds across it often isn't.

Regulators Draw a Hard Line

Hong Kong's financial watchdogs are signaling a zero-tolerance approach to illicit activities in the digital asset space. This move against a prominent influencer isn't just an isolated case—it's a shot across the bow for anyone mixing promotion with potential malfeasance. The message is clear: new asset class, old rules.

Market Maturity Through Enforcement

For all the talk of decentralization, real-world adoption hinges on real-world accountability. High-profile enforcements, while painful for those involved, are the growing pains of a maturing sector. They separate the builders from the opportunists, ultimately building trust—or at least, a credible deterrent. After all, what's finance without a little enforced honesty?

So, as one influencer's legal woes compound, the industry gets another lesson in compliance. The path to legitimacy is paved with subpoenas. How very traditional.

The 34-year-old, who is allegedly jobless, is now charged with four counts of money laundering following the revision of the initial charge by the prosecutors and the addition of three more counts.

The case is inclusive of the wider investigation into the crumbled JPEX VIRTUAL asset trading platform, which the authorities claim defrauded thousands of investors.

Court Adjourns JPEX Case as Authorities Push for District Court Trial

Court documents allege that between November 23, 2020, and August 30, 2023, Chu handled approximately HK$18.78 million held across four bank accounts at Chung An Bank, Mox Bank, Lee & Wah Bank, and HSBC.

Prosecutors argue that Chu knew, or had reasonable grounds to believe, the funds were proceeds of indictable offenses but continued to deal with them regardless.

The prosecution told the court it had sought legal advice from Hong Kong’s Department of Justice and intends to transfer the case to the District Court for trial. Magistrate Lin Zikang adjourned the matter to March 27 to allow time for the preparation of transfer documents.

However, Chu remains free on bail. The charges against Zhu Gongzi add to a growing list of defendants in what has become Hong Kong’s largest alleged financial fraud case.

Authorities first exposed the JPEX scandal in September 2023 after the Securities and Futures Commission warned that the platform was operating without a license.

Police Make 12 Arrests, Seize $1 Million in Cash and $9.8 Million in Assets in JPEX Case

Hong Kong police announced the arrest of 12 suspects in connection with the JPEX #cryptocurrency exchange platform scandal.#CryptoNews #HongKonghttps://t.co/YMjyGWDU8S

Soon after, JPEX froze customer withdrawals and sharply increased withdrawal fees, prompting a wave of complaints from users who said they were unable to access their funds.

As of early 2026, police say more than 2,700 victims have reported losses totaling around HK$1.6 billion, or roughly $206 million.

Investigators have arrested over 80 people in connection with the case and frozen about HK$228 million in assets, including cryptocurrency, cash, luxury vehicles, real estate, and Gold bars.

Hong Kong Tightens Crypto Oversight as JPEX Criminal Case Unfolds

In November 2025, Hong Kong police formally charged 16 people, including promoters, over-the-counter exchange operators, and Core figures linked to JPEX.

Some of them include barrister-turned-influencer Joseph Lam Chok, as well as YouTuber Chan Wing-yee, who were both released on bail.

Hong Kong charges 16 people in $205 million JPEX crypto fraud case as authorities freeze assets and pursue three fugitives through Interpol.#HongKong #Crypto #Fraudhttps://t.co/4vJTcA4UZq

Chengg Cheng, a former television actor, is in custody after failing to post bail. Interpol red notices have also been issued by police against three suspected masterminds who are thought to have escaped from the city.

The criminal case has been progressing slowly because of the magnitude of the evidence in the case.

On December 15, 2025, the Eastern Magistrates Court ordered all the main trials of eight key accused persons to be rescheduled to March 16, 2026, with the reason being that the prosecutors needed to organize the material that was obtained during the two-year investigation.

More charges were made in late December against three other persons involved in the alleged laundering of approximately HK$7.79 million and with an attempt to defraud the course of justice.

Parallel to the criminal process, the victims started to notice some positive changes with the help of the civil courts.