JKO Pay Founder Gets Seven-Year Sentence Over Fund Allocation Case

JKO Pay founder Hu Yi-chia was prosecuted over the allocation of investment funds in 2020, with authorities alleging that investors were not treated fairly and that he obtained illicit proceeds from the process. The case is significant for Taiwan’s fintech sector because it highlights the compliance and governance risks that can arise when payment-company founders expand into regulated asset-management and investment-product businesses.

The Taipei District Court found Hu guilty at the first trial of violating Taiwan’s Securities Investment Trust and Consulting Act, sentencing him to seven years in prison and imposing a NT$100 million ($3.1 million) fine. The Taipei District Prosecutors Office had indicted Hu following its investigation into the 2020 fund allocations. The ruling is not final and may be appealed to a higher court.