News

Crypto Exchange JPEX Seeks Deregistration In Australia Amid Scandal

Key Points:

  • JPEX crypto exchange applies for deregistration amid financial turmoil.
  • Hong Kong police arrest eight people linked to JPEX after HK$1.2 billion in losses.
  • Tighter crypto regulations were promised in Hong Kong after the influencer-linked 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.
Crypto Exchange JPEX Seeks Deregistration In Australia Amid Scandal 2

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 SFC’s investigation, leading to what they described as an “unprecedented catastrophe.”

In response to the scandal, Hong Kong‘s 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 platform’s mobile application. The unfolding saga puts the spotlight on cryptocurrency regulation and investor protection in the region.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Harold

With a passion for untangling the complexities of the financial world, I've spent over four years in financial journalism, covering everything from traditional equities to the cutting edge of venture capital. "The financial markets are a fascinating puzzle," I often say, "and I love helping people make sense of them." That's what drives me to bring clear and insightful financial journalism to the readers of Coincu.

Recent Posts

Analyst Sounds Major Breakout Alert Amid Shiba Inu, WallitIQ, And Dogecoin Price Recoveries

Analysts highlight a breakout alert as Shiba Inu (SHIB), and Dogecoin show signs of recovery…

10 minutes ago

SEC Chair Gary Gensler Will Lose Power From January 20

SEC Chair Gary Gensler will step down on January 20, 2025, coinciding with President-elect Donald…

12 minutes ago

MicroStrategy Convertible Notes Now Out of Stock With $3B Raised

The MicroStrategy convertible notes offering, initially set at $1.75 billion, was increased to $2.6 billion…

39 minutes ago

Qubetics, Cosmos, and Chainlink: Why These Cryptos Are Your Best Bet for November 2024

Discover why Qubetics, Cosmos, and Chainlink are the best cryptos to buy in November 2024.…

4 hours ago

Best Cryptos to Buy in December 2024: Qubetics Presale Goes Ballistic as Ethereum and Quant Look to Build Momentum

Best Cryptos to Buy in December 2024: Qubetics ($TICS) presale explodes, Ethereum (ETH) eyes a…

7 hours ago

USDC and CCTP to launch on Aptos, with Stripe adding Aptos support in crypto products

Palo Alto, California, 21st November 2024, Chainwire

9 hours ago

This website uses cookies.