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Crypto Exchange JPEX Seeks Deregistration In Australia Amid Scandal

WikiBit 2023-09-21 12:37

Abstract:Crypto Exchange JPEX Seeks Deregistration In Australia Amid Scandal

In a shocking turn of events, JPEX, the embattled cryptocurrency exchange, has submitted a deregistration application to the Australian Securities and Investments Commission (ASIC), as reported by Cointelegraph.

The exchange, plagued by controversy, claimed that all its members unanimously agreed to the deregistration, stating that the company was defunct, possessed assets not exceeding A$1,000, and carried no liabilities.

This latest development follows the arrest of six JPEX employees during the Token2049 conference in Singapore on September 13. Hong Kong police accused them of operating an unlicensed cryptocurrency exchange, while the Hong Kong Securities and Futures Commission (SFC) revealed over 1,000 complaints and HK$1.2 billion in losses linked to the exchange. The exchange website is currently inaccessible.

Authorities have taken substantial action, arresting eight individuals in connection with alleged fraud at JPEX. HK$15 million in bank accounts were frozen, and three properties valued at HK$44 million were seized, according to reports by South China Morning Post.

JPEX previously announced a user compensation plan, promising a “one-to-one” asset compensation before September 21, with assets converted into shares of the JPEX decentralized autonomous organization. The exchange blamed a third-party custodian for maliciously freezing platform assets during the SFCs investigation, leading to what they described as an “unprecedented catastrophe.”

In response to the scandal, Hong Kongs leader vowed to tighten digital asset regulation after more than 1,600 investors were impacted, with losses surpassing $150 million. Those arrested included social media influencers who endorsed JPEX, as well as company employees.

The exchange also faced allegations of involvement in a conspiracy to commit fraud, with users reporting disruptions to the platforms mobile application. The unfolding saga puts the spotlight on cryptocurrency regulation and investor protection in the region.

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