JPEX Files for Deregistration in Australia amid Fraud Charges

In a bid to douse the fears of users about the safety of their funds, however,  the platform has published a compensation plan.

A recent filing has revealed that crypto asset platform JPEX is applying to nullify its registration with the Australian Securities and Investment Commission. As contained in the September 20 filing, which was submitted by company director Jieyi Chen, all members of JPEX have unanimously agreed to the deregistration in Australia. The filing also claims that JPEX currently holds no liabilities while its assets do not exceed 1,000 Australian dollars. Hence, the reason why it does not wish to carry on doing business.

Hong Kong Authorities Probe JPEX

Troubles began for the exchange on September 13 when its team had a run-in with Hong Kong police. That was during the Token2049 conference in Singapore.

The authorities made no less than six arrests during the raid, while the rest of the team was forced to abandon JPEX’s corporate booth at the event.

Leading up to the arrests, however, the Hong Kong Securities and Futures Commission (SFC) claims that it received well over 1,000 complaints about the platform. According to the agency, complainants lost to the tune of over 1 billion Hong Kong dollars ($128 million) to JPEX.

Meanwhile, the employees who have been arrested so far have been slammed with fraud-related charges as well as operating an unlicensed crypto exchange.

Once reports of the arrests filtered through, the platform reportedly raised its withdrawal fees to 999 USDT to prevent transfers out of the exchange.

In a bid to douse the fears of users about the safety of their funds, however,  the platform has published a compensation plan. It assures users that every one of them would be reimbursed on a “one-to-one” basis after their assets get exchanged for a stake in the JPEX decentralized autonomous organization by September 21.

Meanwhile, it might be worth noting that, as of publication, the website appears to have been taken down.  As Coinspeaker earlier reported, the ongoing investigation by Hong Kong authorities has caused the platform to suspend all its operations.

Blockchain News, Cryptocurrency News, News

Mayowa Adebajo

Mayowa is a crypto enthusiast/writer whose conversational character is quite evident in his style of writing. He strongly believes in the potential of digital assets and takes every opportunity to reiterate this.
He’s a reader, a researcher, an astute speaker, and also a budding entrepreneur.
Away from crypto however, Mayowa’s fancied distractions include soccer or discussing world politics.

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