JPEX launches dividend plan, industry insiders: not paying back money in disguise.
Written by: Carl, June
Editor: Gene
The JPEX case shocked the whole city of Hong Kong! Within a week, the suspected value of the JPEX case exceeded 1.2 billion yuan, and more than 8,000 victims were involved.
What happened to JPEX was not accidental. It had been included in the list of unlicensed companies (other categories) and suspicious websites by the China Securities Regulatory Commission as early as July 2022. Its various behaviors had already laid the groundwork for today's case.
However, in the face of accusations from the Hong Kong Securities Regulatory Commission and the police, JPEX has always claimed that it is a victim of power, intending to win public sympathy and support, and adopting an evasive attitude towards the platform's own problems.
Dividend plan, buy back after two years
On September 20, JPEX launched the "DAO Stakeholder Dividend Plan" on the official website. The plan stated that 49% of the DAO Stakeholder dividends will be distributed. Existing users can distribute their assets currently held on the platform at a ratio of 1:1. The proportion is converted into DAO Stakeholder dividends. A buyback option of 30% of the original conversion price will be provided after one year, and a buyback option of 100% of the conversion price after two years.
At the same time, JPEX launched a referendum asking users to vote on whether to implement the above plan.
On September 21, JPEX issued an announcement stating that due to the Securities Regulatory Commission’s series of unfair suppression actions and unfair bureaucratic practices, JPEX was determined to embark on the path of a DAO.
A JPEX user told Techub News: "JPEX has been avoiding its own problems. The issue of currency withdrawal has been delayed and not dealt with. The referendum plan is to prevent currency withdrawal in disguise. If it is delayed for two years, JPEX may not exist. Who will I go to then?"
According to the user, after the China Securities Regulatory Commission issued a warning to JPEX, JPEX raised the currency withdrawal threshold, with a handling fee of 999U and a currency withdrawal limit of 1,000U.
"Yesterday the handling fee was adjusted to 945U, which is equivalent to no change. It just gives users the illusion that the platform is improving, and they cannot open the page today." The user said.
According to media reports, UD founder and veteran cryptocurrency investor Zhang Tao pointed out that the purpose of the "DAO Stakeholder Dividend Plan" is to convince the public that JPEX is actively seeking solutions and is not a "cooler". The platform just lacks liquidity. . After the referendum is passed, JPEX can declare to the outside world that "everything is decided by the community and is chosen by the members themselves" and then use this plan to delay it for 2 years.
Yu Peiheng, chief partner of Lin Yu Law Firm, said that if users agree to the "DAO stakeholder dividend plan" proposed by JPEX, they may become a "partner" of JPEX and agree in disguise not to recover assets from JPEX within 2 years, so it is very There is a high chance that the original legal retroactive rights against JPEX will be lost.
Judging from on-chain data, JPEX holds a large amount of virtual currency. Since the incident, JPEX has dispersed and transferred the exchange’s virtual currency instead of using it to solve users’ withdrawal problems.
On September 22, Hong Kong Legislative Council member Wu Jiezhuang released the flow and distribution of JPEX funds on social media. The current balance of major currencies on the JPEX platform reached HK$167.7 million, including BTC, ETH, USDT, USDC, etc.
According to media reports, from September 13th to 20th, a total of 7.2 million USDT was transferred from JPEX’s hot wallet to centralized exchanges such as Binance and MEXC.
Industry analysts said: "JPEX is likely to divert attention and win the sympathy of users by acting as a victim of power, and then force the 'minority to obey the majority' through a referendum, ultimately achieving the goal of not having to pay back the money."
He is tough on the China Securities Regulatory Commission and the evidence to refute is very weak.
JPEX has been playing the victim since the SEC issued its warning, however, its rebuttal has been somewhat weak.
On September 13, in the face of the warning from the Securities Regulatory Commission, JPEX announced in response: "As early as February this year, it issued an announcement that it would apply for a cryptocurrency license. We have already started consultation and are interested in applying. However, the application takes time. At this stage, The platform is still being prepared for updates, and the application for a license has not yet been submitted and any publicity for the formal application has not been made public.”
JPEX also "passed the blame" to the Securities and Futures Commission: "Hong Kong intends to develop web3.0, but has not created a good image. If the Securities and Futures Commission has no intention of creating an environment friendly to cryptocurrency companies, Hong Kong's road to web3.0 will be far away. Therefore, this platform will decide to cancel the application for a Hong Kong license."
A user said in the community that he was really touched when he saw JPEX's response and thought that JPEX would be fine. However, what happened next was shocking.
In the early morning of September 14, JPEX was unable to withdraw funds and began to transfer funds. No one attended its booth at Token2049 in Singapore that day. The media revealed that JPEX’s office in the Asia Blockchain Building was quickly emptied.
Since then, JPEX has continued to operate by "increasing handling fees at the request of the China Securities Regulatory Commission (which actually has nothing to do with the China Securities Regulatory Commission) and requiring users to fill in personal information to solve the problem."
On September 19, JPEX issued an announcement stating that from April 2022 to August 2023, it had been communicating with the Securities Regulatory Commission and seeking relevant guidance, but had not received any positive response or guidance, and attached a screenshot of the email record .
However, the China Securities Regulatory Commission responded that it has been paying close attention to the platform and has communicated with the platform about its suspected false and sincere confession activities. However, JPEX has always adopted an uncooperative attitude and failed to make substantive responses to the China Securities Regulatory Commission’s requirements. In response, it was included in the China Securities Regulatory Commission’s list of unlicensed companies and suspicious websites in July 2022.
JPEX has yet to respond further.
Use VISA to misappropriate user funds
There has been a lot of false propaganda surrounding JPEX.
An industry insider told Techub News that before the JPEX case, AC Capital insiders told him that AC Capital had no cooperation with JPEX, but JPEX announced that the two parties had reached a strategic cooperation.
According to the JPEX official website, JPEX announced in October 2022 that it had reached a strategic partnership with AC CAPITAL, a well-known WEB3 investment institution. Both parties will use their respective resources and blockchain technology to jointly establish a Web3 and NFT project ecology.
In March 2022, JPEX announced that it had reached a cooperation with VISA to launch a cryptocurrency debit card, but this was later denied by VISA.
JPEX has invited artists such as Julian Cheung and many Internet celebrities to promote it. Among them, JPEX described Julian Cheung as the "Brand Ambassador of Hong Kong". However, Zhang Zhilin's agent responded: "I informed JPEX in advance not to use the likeness before obtaining the license, and we will reserve the right to pursue JPEX."
Industry analysts said that there are too many doubts about JPEX. Judging from its various behaviors, JPEX is likely to be a scam. The boss behind the scenes never thought about making JPEX a truly compliant virtual asset exchange from the beginning.
According to reports, in July this year, JPEX sponsored a boxing match. However, the community believed that JPEX was suspected of misappropriating user funds because the funds it sponsored came from users’ withdrawal wallet addresses, and formal exchanges have no control over the management of user assets. The wallet is isolated.
