Crypto exchange JPEX no longer wants to register in Australia

Cryptocurrency exchange JPEX, facing various problems, recently filed Application to cancel its registration in Australia. The unlicensed platform solicited more than $128 million from its users before being reprimanded by the Hong Kong Securities and Futures Commission.

Australia deregistration process and legal implications

JPEX, a Hong Kong-based cryptocurrency exchange, It is currently going through a hectic period, has filed an application to cancel its registration in Australia. The process was initiated by Jiayi Chen, director of JP-EX Crypto Asset Platform PTY LTD (JPEX) with the Australian Securities and Investments Commission.

According to File consulted by Cointelegraph On September 20, all members of the organization will have approved the deregistration request. JPEX says it will no longer carry out operationsNo assets and no liabilities in excess of 1,000 Australian dollars.

On September 13, the JPEX team reportedly abandoned its booth at the Token2049 conference in Singapore after Hong Kong police arrested six JPEX employees. Fraud allegations Linked to the operation of an unlicensed cryptocurrency exchange platform. The Hong Kong Securities and Futures Commission said it had received more than 1,000 complaints about the JPEX platform. Over $1 billion in losses From Hong Kong ($128 million).

Withdrawal and compensation scheme

In response to the allegations and the increasing publicity surrounding his troubles, JPEX has reportedly raised its withdrawal fee to 999 USDT. Previously, JPEX offered returns of up to 30% per year for staking stablecoins.

The website is currently unavailable. Shortly before its closure, JPEX was released Compensation plan For its users, He promised to refund the money “One-to-one”, before September 21, was converted into shares in JPEX’s decentralized autonomous system. The exchange also mentioned Third-party custodians “maliciously disabled” platform assets due to SFC investigationleading to an “unprecedented disaster. »

JPEX: Recent Developments

The JPEX affair continues to escalate in Hong Kong, constantly exposing new details of the crisis. Users of the site have expressed their inability to get their money back, It led to the arrest of eight peopleSuspected of conspiring to defraud investors.

On the basis of the complaint, the police conducted a series of raids and various items including cash, jewellery, computers and phones were seized at many places. The bank accounts of the suspects were searched About HKD 15 million will be frozen, and assets worth HKD 44 million will be confiscated.. Police are further investigating the possibility of confiscating an additional HKD 60 million in suspected illegal gains.

At the same time, Joseph Lam, “Jolamchok” Ann Instagramarrested, JPEX’s liquidity crisis was brought into focus. A search of his office yielded various evidence including a bag containing currency notes. The South China Morning Post The arrest highlights new aspects of the exchange’s financial instability and reveals the scale of the challenges facing users and regulators.

Source: Cointelegraph