Troubled Hong Kong Crypto Exchange JPEX Applies for Deregistration in Australia

Facing Fraud Charges and Complaints

The troubled Hong Kong-based crypto exchange JPEX has recently applied for deregistration in Australia, as revealed in a filing with the Australian Securities and Investment Commission. The application, submitted by Jieyi Chen, the director of JP-EX Crypto Asset Platform PTY LTD (JPEX), states that all members of the company agree to the deregistration. The filing also claims that JPEX is no longer in operation and has no significant assets or liabilities.

Abandoning Booth After Arrests

During the Token2049 conference in Singapore on September 13, the JPEX team reportedly left their corporate booth after Hong Kong police arrested six employees on charges of fraud for running an unlicensed crypto exchange. The Hong Kong Securities and Futures Commission (SFC) received over 1,000 complaints regarding the JPEX platform on the same day, with losses amounting to approximately $128 million.

Increased Withdrawal Fees

In an effort to prevent transfers out of the exchange, JPEX allegedly raised its withdrawal fees to 999 Tether (USDT) after the public learned of the fraud charges. Prior to this, JPEX had offered high annual yields of up to 30% for stablecoin staking.

Compensation Plan and Frozen Assets

JPEX published a compensation plan for its users shortly before its website became inaccessible. The plan promised reimbursements on a "one-to-one" basis, with users' assets being exchanged for stake in the JPEX DAO by September 21. The exchange blamed "malicious frozen" assets held by third-party custodians as a result of the SFC investigation, leading to what JPEX called an "unprecedented catastrophe."

*Note: The JPEX website is currently inaccessible, making it difficult to verify the compensation plan and the claims made about frozen assets.