Troubled Hong Kong Crypto Exchange JPEX Seeks Deregistration in Australia
Hong Kong-based cryptocurrency exchange JPEX has filed for deregistration in Australia amid mounting legal troubles. The company made headlines when six of its employees were arrested on fraud charges during the Token2049 conference in Singapore. The Hong Kong Securities and Futures Commission (SFC) received over 1,000 complaints about JPEX, with reported losses exceeding HKD 1 billion ($128 million).
Increased Withdrawal Fees and Compensation Plan
Following the arrests, JPEX raised its withdrawal fees to 999 USDT to prevent users from transferring their funds out of the exchange. The platform had previously offered high annual yields of up to 30% on stablecoin staking. However, the JPEX website is currently inaccessible.
Prior to its takedown, JPEX published a compensation plan for users, promising to reimburse them on a “one-to-one” basis by converting their assets into a stake in the JPEX decentralized autonomous organization (DAO) by September 21. The exchange also claimed that third-party custodians had frozen platform assets due to the SFC investigation.
Hot Take: Uncertainty Surrounds JPEX’s Future
The future of JPEX remains uncertain as it faces legal challenges and attempts to deregister in Australia. The arrest of its employees and the numerous complaints lodged against the exchange have severely damaged its reputation. Users are left wondering if they will ever recover their funds and what will happen to their assets converted into stakes in the JPEX DAO.
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