Hong Kong prosecutors have escalated the landmark JPEX cryptocurrency fraud investigation, filing three additional money laundering charges against social media influencer Chu Ka-fai, also known as "Mr. Zhu" or "Zhu Gongzi." This brings the total charges against him to four. The amended charges were announced during a January 2 hearing at the Eastern Magistrates' Court.
The prosecution alleges that between November 2020 and August 2023, Chu laundered approximately HK$18.78 million (about $2.4 million) through accounts at four digital banks: ZA Bank, Mox Bank, Livi Bank, and WeLab Bank. Authorities claim he knew or should have known the funds were proceeds from criminal activity. Chu remains on bail as the case proceeds.
Due to the severity and scale of the alleged fraud, the Department of Justice has confirmed the case will be transferred to the District Court. Magistrate Lam Tsz-kang adjourned proceedings until March 27 to allow for the preparation of transfer documents.
This development is part of the wider investigation into the collapse of the unlicensed JPEX trading platform, which authorities allege defrauded over 2,700 investors, resulting in total losses exceeding HK$1.6 billion (over $206 million). Police have made more than 80 arrests and frozen around HK$228 million in assets, including cryptocurrency, cash, and property. Sixteen individuals, including public figures and influencers, have been formally charged. Interpol has issued red notices for three key suspects believed to have fled Hong Kong.
The case has prompted a regulatory crackdown, with the Securities and Futures Commission (SFC) increasing scrutiny of cryptocurrency promotions and unlicensed platforms. The SFC had warned the public about JPEX prior to its collapse, citing exaggerated returns and misleading claims. Main trials for several key defendants, including barrister-influencer Joseph Lam, are scheduled for March 2026.
