JPEX Introduces Dividend Plan for Investors in Response to Ongoing Scandal
In light of the ongoing HK$1.3 billion scandal surrounding JPEX, the cryptocurrency exchange has proposed a new dividend plan for its investors. The scandal erupted after Hong Kong police arrested six JPEX employees on charges of fraud and running an unlicensed crypto exchange. The investigation was prompted by a warning from the Hong Kong Securities and Futures Commission (SFC), which revealed that JPEX and crypto influencers had been spreading false information on social media.
The SFC clarified that JPEX had never applied for a virtual asset trading license in Hong Kong, contrary to the misleading claims made by the exchange. In response to the liquidity crisis, JPEX suspended some of its operations and increased withdrawal fees. To further address the scandal, Hong Kong police have requested telecom service providers to block access to JPEX’s website and remove associated pages from social media platforms.
Legal Troubles and Deregistration in Australia
A total of eleven individuals have been apprehended in connection with the alleged conspiracy to defraud linked to JPEX. The SFC has denied JPEX’s assertions that it sought guidance from the regulator regarding compliance with legal requirements. Meanwhile, JPEX has initiated a process for deregistration in Australia, stating that it is no longer conducting business and has no liabilities.
JPEX Unveils DAO Stakeholders Dividend Plan
In response to regulatory challenges, JPEX has introduced the “DAO Stakeholders Dividend Plan.” This initiative allows users to convert their assets on the platform into DAO stakeholder dividends at a one-to-one ratio. Under this plan, 49% of the total dividends will be distributed, valued at approximately 400,000,000 USDT. JPEX also plans to offer repurchase options after one and two years.
New users opting for DAO stakeholder dividends will receive double the payout compared to regular participants. It is important to note that becoming a DAO stakeholder does not entail full operational responsibilities of the platform.
Hot Take: JPEX Struggles Amidst Scandal and Regulatory Pressure
JPEX finds itself in a dire situation as it faces legal troubles, deregistration in Australia, and an ongoing scandal in Hong Kong. The arrest of employees, allegations of fraud, and dissemination of false information have severely impacted the exchange’s reputation and led to significant losses for users.
To address the crisis, JPEX has implemented measures such as suspending operations, increasing withdrawal fees, and introducing the DAO Stakeholders Dividend Plan. However, it remains to be seen whether these efforts will be enough to restore trust and stability to the troubled exchange.
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