Key Highlights
- Hong Kong prosecutors have added three new money laundering charges against influencer “Mr. Zhu” in the JPEX case.
- Authorities allege HK$18.8 million flowed through multiple digital bank accounts over nearly three years.
- The case is expected to be transferred to the District Court as enforcement against unlicensed crypto platforms tightens.
Hong Kong authorities have escalated their enforcement action in the high-profile JPEX scandal, adding three additional money laundering charges against internet personality Zhu Jiahui, known online as “Mr. Zhu.”
According to local media reports, prosecutors amended the original charge during a January 2 hearing at the Eastern Magistrates’ Court, accusing Zhu of handling criminal proceeds totaling approximately HK$18.78 million.
The money allegedly flowed through accounts at digital lenders, including ZA Bank, Mox Bank, Livi Bank, and WeLab Bank, over nearly three years, from late 2020 to mid-2023. Prosecutors say this transaction history forms a clear pattern of suspicious activity.
Case heads toward District Court
The Department of Justice confirmed it has sought legal advice and intends to transfer the case to the District Court, citing the seriousness and scale of the alleged offenses. Magistrate Lam Tsz-kang adjourned proceedings until March 27 to allow time for the preparation of committal documents. Zhu remains out on bail pending the next hearing.
Prosecutors allege Zhu either knew or had reasonable grounds to believe the funds represented proceeds of indictable offenses and nonetheless processed the transactions. With the new charges, he now faces four counts of money laundering in total.
Part of a wider JPEX crackdown
The case is part of Hong Kong’s broader crackdown on JPEX, an unlicensed virtual asset trading platform that collapsed in 2023 after users reported frozen withdrawals and heavy losses. Investigators have said the platform relied heavily on influencers and over-the-counter promoters to attract investors despite lacking regulatory approval.
Earlier crackdowns swept up at least 16 people tied to the scheme, including influencer Joseph Lam, now staring down fraud, money laundering, and unlicensed promotion charges. The net has widened so far that Interpol has stepped in, issuing Red Notices for suspects believed to have already slipped out of Hong Kong, a sign that this case has moved well beyond local damage control.
Regulatory pressure intensifies
Hong Kong regulators have long treated JPEX as a cautionary tale, and they’re done being subtle about it. The Securities and Futures Commission had already flagged the platform for flashing classic red flags, glossy promises of outsized returns, and fuzzy claims about licenses that never quite existed.
As the case advances to higher courts, the warning is unmistakable. Pushing crypto to followers without licenses, disclosures, or guardrails is no longer a gray-area hustle. In Hong Kong, it’s starting to look a lot more like a fast track to criminal charges.
Also read: Hacker Gets Hacked After Leaving Stolen Funds Exposed On-Chain
