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JPEX Crypto Exchange Files for Deregistration Amid Fraud Allegations and Costs Surge

Algoine News
Summary:
Hong Kong-based cryptocurrency platform JPEX has filed for deregistration in Australia following fraud charges and a subsequent rise in withdrawal fees to deter fund transfers. The Securities and Futures Commission in Hong Kong has received over 1,000 complaints about JPEX, with reported losses exceeding $128 million. The company, which has halted operations and holds less than $1000 AUD in assets, has proposed a refund scheme for users, while revealing that ongoing investigations have resulted in the freezing of additional platform assets.
Hong Kong's beleaguered digital currency platform JPEX has submitted a request for deregistration in Australia. As reflected in documents reviewed by Cointelegraph on September 20, Jieyi Chen, manager of JP-EX Crypto Asset Platform PTY LTD (JPEX), has lodged a request for deregistration with Australia's Securities and Investment Commission (ASIC). JPEX's submission declares all company members consent to the deregistration, the company has ceased doing business, it has assets below $1000 Australian Dollars, and possesses no financial obligations. On September 13, during the Token2049 convention in Singapore, the JPEX team is said to have deserted their commercial stall when Hong Kong law enforcement apprehended six JPEX staff members on deception charges related to running an unauthorized digital currency platform. On the same date, the Hong Kong Securities and Futures Commission (SFC) announced it had received more than 1,000 grievances about JPEX, with allegations of losses surpassing one billion Hong Kong dollars ($128 million). As the matter became widely known, JPEX purportedly increased its withdrawal charges to 999 Tether (USDT) to deter fund transfers from the platform. Earlier, JPEX reportedly offered returns of up to 30% annually on stablecoin investments. The website is now unreachable as of the time of issuance. Prior to the website being taken down, JPEX detailed a compensation scheme for users, with promises to refund users on a "one-to-one" rationale, swapping their assets for a stake in the JPEX DAO by September 21. The platform also revealed that third-party guardians have "maliciously frozen" platform assets due to the ongoing SFC probe, leading to an "unprecedented disaster." In the magazine, it was stated: 'AI has killed the industry': EasyTranslate chief on adapting to change.

Published At

9/20/2023 6:11:31 PM

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