November 9th, according to Hong Kong media reports, the police are investigating the cryptocurrency exchange JPEX for an alleged fraud case. As of now, 16 people have been prosecuted, with one person having been arraigned earlier. The remaining 15 people are charged with conspiracy to commit fraud, money laundering, obstructing justice, and the offense of "fraudulently inducing others to invest in virtual assets" under the Anti-Money Laundering and Counter-Terrorist Financing Ordinance. Yesterday afternoon, multiple cases were brought before the Eastern District Court, and the 15 defendants were temporarily excused from entering a plea.The prosecution applied to transfer the cases of the first group of 8 defendants to the High Court for trial and postponed the hearing to December 15th. Among the first group of 8 defendants, apart from former artist Zheng Junxi's bail application being rejected by the court and requiring continued remand, the remaining 7 individuals were granted bail pending trial. Internet celebrities Lin Zuo and Chen Yingyi were each granted bail of $300,000.Lin Zuo is charged with one count of fraud and one alternative count (namely, "fraudulently inducing others to invest in virtual assets"). The charge alleges that between July 8, 2023, and September 12, 2023, he falsely represented or allowed others to make false statements, and made fraudulent or misleading false statements to others to induce them to enter into agreements related to the acquisition, disposal, subscription, or underwriting of virtual assets.The prosecution pointed out that Lin Zuo was said to have been able to successfully withdraw assets from JPEX, possessed insider information about JPEX that ordinary investors could not obtain, and claimed that investing in specific virtual assets through JPEX could yield a certain percentage of returns.