Hong Kong Legislative Council Member Wu Jiezhuang Signals Civil Suit Against JPEX Crypto Exchange
In Brief
Wu Jiezhuang revealed that legal professionals are in contact with those affected by JPEX incident, a civil lawsuit would be filed shortly.
During a press conference with the representatives from the Web3 sector in Hong Kong, Wu Jiezhuang, a member of the National Committee of the Chinese People’s Political Consultative Conference and a member of the Hong Kong Legislative Council, revealed that legal professionals are currently in direct communication with individuals affected by the incident related to the cryptocurrency exchange JPEX. He indicated that the process of filing a civil lawsuit would be initiated shortly.
Approximately six months have elapsed since the JPEX incident unfolded, coinciding with significant advancements within the Web3 sector during this period. A notable outcome of these developments is the heightened awareness among the public regarding the significance of engaging with licensed institutions, he further added.
Wu Jiezhuang additionally proposed that the government of the Special Administrative Regions (SAR) consider augmenting resources dedicated to investor education. This measure aims to ensure that the public comprehends the high-risk nature of virtual assets as investment instruments characterized by volatile fluctuations. Hence, individuals are advised to acquire comprehensive knowledge about related products before committing to investment decisions.
Hong Kong’s JPEX Scandal Emerges As Largest Financial Fraud: 70 Individuals Arrested, $29.37M Frozen So Far
Emerging as one of the largest alleged financial fraud cases in Hong Kong, the JPEX scandal surfaced in September last year following accusations by the Securities and Futures Commission (SFC). The cryptocurrency trading firm was identified as an unlicensed platform and was accused of engaging in suspicious activities.
Despite facing criticism, the exchange remained defiant and imposed a significant fee on users for withdrawing virtual assets. Additionally, it suspended the operations of its Earn program due to an ongoing liquidity crisis. Although spot trades persisted, users reported that the platform imposed a withdrawal fee of 999, with a maximum withdrawal limit of 1000 USDT.
Subsequently, the local police received 1,641 complaints, collectively involving assets valued at approximately $152 million. According to reports from April 2024, Hong Kong authorities have arrested over 70 individuals and frozen approximately $29.37 million in assets related to the case up to this point.
The incident also had a wider impact as regulatory authorities in Hong Kong expedited the approval process for new products offered by licensed virtual asset operators and implemented stricter supervision over platforms found to be non-compliant.
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About The Author
Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
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Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
