A Hong Kong appeals court has overturned the 2022 fraud conviction of pro-democracy activist and media tycoon Jimmy Lai — but the 78-year-old remains behind bars under a separate 20-year national security sentence.
What Happened?
On February 25, 2026, Hong Kong’s Court of Appeal ruled in favor of Jimmy Lai, quashing his October 2022 fraud conviction and setting aside the five-year-and-nine-month prison sentence he had received for allegedly violating the lease terms of his pro-democracy newspaper, Apple Daily.
The appeals court — comprising Judges Jeremy Poon, Anthea Pang, and Derek Pang — concluded that prosecutors had failed to prove beyond reasonable doubt that Lai and his co-defendant, Wong Wai-keung (a former senior executive at Apple Daily’s parent company, Next Digital), had made false representations. Both had pleaded not guilty to the original charges.
Background: Who Is Jimmy Lai?
Jimmy Lai is a British-born media mogul widely regarded as one of Hong Kong’s most prominent democracy advocates. He founded Apple Daily, a tabloid that was sharply critical of China’s Communist Party, before the publication was forced to close in 2021 following a police raid and the freezing of its assets.
Lai has been a vocal critic of Beijing for decades and has faced a series of prosecutions that human rights organizations and Western governments characterize as politically motivated.
The Fraud Case vs. The National Security Case
It is important to distinguish between the two legal proceedings:
The fraud case (now overturned): Lai was convicted in 2022 on the grounds that he had concealed the operation of a consulting firm within the Apple Daily premises, in violation of the property lease. He was sentenced to nearly six years in prison.
The national security case (still standing): In December 2025, Lai was found guilty of two counts of conspiracy to collude with foreign forces under Hong Kong’s national security law — legislation Beijing imposed in 2020 — as well as one count of publishing seditious materials under colonial-era law. Judges in that case described Lai as the “mastermind” of a campaign to lobby foreign governments to impose sanctions on China and Hong Kong. He was sentenced to 20 years in prison in February 2026.
The overturn of the fraud conviction is a legal win, but Lai remains incarcerated under the national security sentence.
International Reaction and Political Implications
The United States and other Western nations have repeatedly criticized the prosecutions of Jimmy Lai as politically motivated attempts to silence dissent in Hong Kong. President Donald Trump has previously vowed to secure Lai’s release, and the issue is expected to arise during Trump’s planned meeting with Chinese President Xi Jinping — a three-day visit to China scheduled to begin on March 31, 2026.
Lai’s daughter, Claire Lai, was invited to attend Trump’s State of the Union address on February 25, 2026, as the guest of House Speaker Mike Johnson. Johnson released a statement saying Lai “has devoted his career to championing democracy in Hong Kong,” adding that he is imprisoned “for simply defending free speech.”
The Hong Kong government maintains that Lai received a fair trial and that he has received appropriate medical care while in custody. His family has raised concerns about his health, noting that a 20-year sentence effectively means the 78-year-old could die in prison.
A Pattern of Prosecutions
The fraud case is not an isolated legal battle. Lai has previously been sentenced to prison for his role in unauthorized assemblies during the 2019 pro-democracy protests, and for participating in an unauthorized vigil in 2020 commemorating the victims of the 1989 Tiananmen Square crackdown.
Critics argue that these multiple prosecutions form part of a coordinated effort by Hong Kong authorities — under pressure from Beijing — to suppress political opposition and dissent in the territory, which was a British colony until 1997.
Related Development: Father of Activist Jailed
In a separate but related case on the same day, a Hong Kong court sentenced Kwok Yin-sang, 69, to eight months in prison for attempting to withdraw funds from his daughter’s insurance policy. His daughter, Anna Kwok, is the executive director of the Washington-based Hong Kong Democracy Council and is among 34 overseas activists wanted by Hong Kong police under the city’s national security law, which carries bounties of up to HK$1 million (approximately US$128,000) for their capture.
Anna Kwok responded defiantly: “Weaponizing my love for my family will not limit my love for Hong Kong.”
The case marks the first time a relative of a wanted pro-democracy activist has been prosecuted under these provisions, raising significant concerns among human rights advocates about the reach of Hong Kong’s national security framework.
Key Takeaways
- A Hong Kong appeals court overturned Jimmy Lai’s 2022 fraud conviction on February 25, 2026.
- Lai still faces 20 years in prison under a separate national security conviction.
- Western governments, including the United States, have condemned the prosecutions as politically motivated.
- The Jimmy Lai case is expected to feature in upcoming US–China diplomatic talks.
- In a related case, the father of a US-based Hong Kong activist was jailed in the first prosecution of a pro-democracy activist’s relative under the national security law.
