JPEX crypto exchange launches asset-lock-up plan, as some users cry foul

Example of JPEXs DAO dividend scheme repurchase choices. A JPEX user– who was given anonymity– told the South China Morning Post in an Oct. 4 report claims her properties had actually been converted relatively without her agreement or prior knowledge.She declares that she and other users found they might no longer withdraw their possessions following JPEXs announcement to continue with the plan.The Hong Kong cops and the citys Securities and Futures Commission have formed a joint job force to break down on prohibited crypto exchange activities. The JPEX scandal continues to unfold.

” All of my [Tether] USDT and other cryptocurrencies are gone,” the person stated. She claimed her possessions were converted to JPC– a low liquidity token with few usage cases.” Some other users holding the tokens and other properties have likewise discovered them moved,” the user stated. “Given the unknown price and the impossibility of withdrawal, our properties have now ended up being simply waste.” Its not understood if individuals quoted in the report enacted favor of the strategy but some JPEX users previously informed the SCMP they d been required to accept the plan as there was no option to vote against it on its app.JPEX did not instantly respond to Cointelegraphs ask for comment.Related: New book claims Binance CEO CZ turned down SBFs $40M ask for futures exchangeJPEXs dividend plan comes in the middle of Hong Kong authorities detaining multiple individuals in connection with the exchange as its accused of operating an unapproved crypto platform by the regions securities watchdog.Hong Kong authorities state the Dubai-based exchange defrauded a minimum of 2,300 individuals of $178 million (1.4 billion Hong Kong dollars). Previously on Oct. 4, the areas authorities and securities regulator released a crypto-focused task force intending to fight illicit activities by crypto exchanges.Magazine: How to safeguard your crypto in an unstable market– Bitcoin OGs and experts weigh in

Other Questions People Ask

What is the asset-lock-up plan launched by JPEX crypto exchange?

The asset-lock-up plan introduced by JPEX crypto exchange involves converting users' assets into a low liquidity token called JPC without their consent. This decision has left many users unable to withdraw their original cryptocurrencies, leading to significant frustration and claims of foul play. The situation has escalated to the point where Hong Kong authorities are investigating the exchange for operating an unapproved platform.

How have users reacted to JPEX's asset-lock-up plan?

Users have expressed outrage over the asset-lock-up plan, with some claiming their properties were converted without prior knowledge or agreement. An anonymous user reported that all her Tether USDT and other cryptocurrencies were gone, replaced by JPC, which has limited utility and low liquidity. Many users feel trapped, as they were forced to accept the plan due to a lack of voting options within the app.

What actions are Hong Kong authorities taking regarding JPEX's activities?

In response to the JPEX scandal, Hong Kong authorities have formed a joint task force with the Securities and Futures Commission to crack down on illegal crypto exchange activities. They are investigating claims that JPEX defrauded at least 2,300 individuals out of $178 million. This crackdown comes amid rising concerns over the legitimacy of crypto exchanges operating in the region.

What should users do if they are affected by JPEX's asset-lock-up plan?

Affected users should document their experiences and any communications with JPEX regarding the asset-lock-up plan. It may be beneficial to report the situation to local authorities or financial regulators, especially given the ongoing investigations into JPEX. Users should also stay informed about updates from the task force and consider seeking legal advice to explore their options.

What implications does the JPEX scandal have for the crypto market in Hong Kong?

The JPEX scandal highlights significant regulatory challenges within the crypto market in Hong Kong, prompting authorities to take a firmer stance against unregulated exchanges. As investigations unfold, there may be increased scrutiny on other platforms operating in the region. This situation could lead to stricter regulations and a push for greater transparency in the crypto industry, impacting user trust and investment strategies.