Hong Kong Authorities Investigate JPEX for Alleged Fraud
Hong Kong authorities are conducting an investigation into cryptocurrency exchange JPEX following allegations of fraud. More than 2,000 complaints have been received from investors who feel aggrieved by the platform. Influencers who promoted JPEX are among the eleven individuals taken into custody.
Hong Kong Intensifies Probe
Reports have emerged that JPEX’s office address in Hong Kong is occupied by a company called Coffee, whose staff claim to be unaware of the crypto exchange. The address has already been visited by authorities. Meanwhile, JPEX’s Taiwan office was found to be empty.
DAO Stakeholders Dividend Plan
In response to the ongoing investigations and arrests, the Hong Kong regulator has ordered telecommunication service providers to block access to JPEX’s website and mobile application. In turn, JPEX has introduced the “DAO Stakeholders Dividend Plan,” allowing users to convert their assets into DAO stakeholder dividends at a 1:1 ratio. The plan involves distributing 49% of the DAO Stakeholder Dividends valued at 400 million USDT for subscription and conversion.
JPEX is also offering users a repurchase option at 30% of the original conversion price after one year, with the repurchase offer increasing to 100% after two years. Users have been asked to vote on the new scheme, with 70% in agreement and 30% in disagreement as of September 23. Voting will conclude on September 28, 2023.
Hot Take: Hong Kong Crypto Exchange Faces Investigation for Alleged Fraud
Hong Kong authorities are cracking down on cryptocurrency exchange JPEX as they investigate allegations of fraud. With over 2,000 complaints from investors and several individuals taken into custody, the investigation is intensifying. Reports suggest that JPEX’s office address in Hong Kong is associated with a different company, while their Taiwan office is empty.
In response to the regulatory actions, JPEX has introduced the “DAO Stakeholders Dividend Plan,” allowing users to convert their assets into DAO stakeholder dividends. However, the exchange faces challenges as its website and mobile application have been blocked by telecommunication service providers. Users can vote on the new scheme, but opinions are divided.
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