Hong Kong Takes Action Against JPEX
In a significant move, Hong Kong officials have instructed local telecom providers to block JPEX, a cryptocurrency exchange currently facing scrutiny. These restrictions came after the local police apprehended 11 individuals in connection with an ongoing fraud investigation, targeting several city locations.
JPEX Responds to Accusations
On Wednesday, JPEX released a statement expressing its dismay at the Hong Kong Securities and Futures Commission’s (SFC) decision to block its mobile application and website. JPEX said, “Since September 13, 2023, a slew of accusations have been directed at our platform, all without prior investigation or review.”
Despite this setback, JPEX remains determined to serve its clientele. They’ve encouraged users to employ virtual private network (VPN) services like Surfshark to bypass these restrictions and access their platform seamlessly.
The Root of the Controversy
JPEX’s troubles began when the SFC alleged misleading statements by the crypto platform on social media. Accusations centered around JPEX’s claim of having applied for a Hong Kong virtual asset trading license.
Adding to their woes, on Sunday, JPEX announced operational suspensions and increased withdrawal fees due to liquidity concerns. By Monday night, local police confirmed receiving 1,641 complaints related to JPEX. These complaints, totalling HK$1.19 billion ($152 million), predominantly concern users’ inability to withdraw their assets.
JPEX’s Solution: The DAO Proposal
In a bid to rectify the situation, JPEX unveiled its “DAO Stakeholders Dividend Plan” on Wednesday. This proposal allows users to convert their JPEX assets into DAO dividends on a 1:1 ratio. JPEX commits to distributing 49% of these dividends, approximating a whopping 400 million USDT. Additionally, they’ve promised repurchase options in the subsequent one and two years. To sweeten the deal, JPEX is offering double payouts for new subscribers.
Celebrity Connection: Julian Cheung in the Spotlight
In a surprising twist, Asian film superstar Julian Cheung became entangled in the JPEX scandal. Last year, JPEX introduced Cheung as their local “brand ambassador,” amplifying their promotional efforts. Subsequently, Hong Kong police have questioned Cheung regarding an alleged HK$1.3 billion (US$166 million) fraud linked to JPEX. Sources confirm that Cheung cooperated fully and has not been arrested.
The recent events surrounding JPEX underscore the volatile nature of the crypto landscape. While JPEX’s future remains uncertain, one thing is clear: the tussle between regulators and crypto platforms is far from over.
