Hong Kong Authorities Block Access to JPEX Cryptocurrency Exchange
Hong Kong authorities have instructed local telecoms providers to block online access to JPEX, a troubled cryptocurrency exchange. In response, the police have detained 11 individuals and raided multiple locations, seizing assets related to the case. The Securities and Futures Commission of Hong Kong has also blocked JPEX’s mobile application and official website, accusing the platform of operating model and promotional method violations without investigation or review.
JPEX is urging its users to utilize virtual private network (VPN) services to bypass the blockage and access their platform. The exchange reaffirmed that it will continue to operate despite the oppression and unfair treatment it is facing.
Intensified Enforcement by Authorities
The police investigation into JPEX was initiated after the Securities and Futures Commission warned that crypto influencers and the trading platform had made false or misleading statements on social media regarding their application for a virtual asset trading license in Hong Kong. Following an ongoing liquidity crisis, JPEX suspended certain operations and increased withdrawal fees.
The police have received 1,641 complaints related to the JPEX case, with users claiming they were unable to withdraw their holdings from the exchange. The total value of assets involved in these complaints is approximately HK$1.19 billion ($152 million).
JPEX Proposes DAO Stakeholders Dividend Plan
In response to these events, JPEX announced plans to launch a “DAO Stakeholders Dividend Plan.” Users will be able to convert their assets on the platform into DAO stakeholder dividends at a 1:1 ratio. JPEX will distribute 49% of the DAO stakeholder dividends, with a total value of approximately 400,000,000 USDT for subscription and conversion. The exchange also stated that new users who subscribe to the DAO stakeholder dividends will receive twice the payout. These subscribers will not be responsible for the platform’s operational responsibilities.
Hot Take: JPEX Faces Blockage and Enforcement Actions in Hong Kong
Hong Kong authorities have taken steps to block access to JPEX, a cryptocurrency exchange, while local police have detained individuals and seized assets in relation to the case. The Securities and Futures Commission has accused JPEX of violations without proper investigation. Despite these challenges, JPEX is encouraging users to utilize VPN services to continue accessing their platform. The intensified enforcement actions come after allegations of false statements by crypto influencers and the suspension of certain operations due to a liquidity crisis. In response, JPEX has proposed a DAO Stakeholders Dividend Plan, allowing users to convert their assets into dividends.
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