Embattled cryptocurrency platform JPEX is pushing ahead with a move to convert its stored user assets into shareholder dividends that can only be claimed within two years, while Hong Kong police have announced two more arrests in connection with the growing scandal. A suspect was arrested.
A JPEX user said Wednesday morning that she and some of the victims of the local biggest case of alleged digital currency fraud no longer have any assets, hours after the company announced plans to increase cash flow and retain investors. He told the Post he was no longer able to withdraw his money.
“All about my USDT [Tether tokens] “Everything is gone, everything has been transferred to JPC…Other users who hold tokens and other assets are also aware that they have been transferred,” said a user who requested anonymity, adding that the platform It added that it was not informed of the exchange price of its own digital currency, JPC.
Tether is a stablecoin, a type of cryptocurrency designed to maintain a stable price point. Each USDT is worth 1 US dollar.
“Given that the price is unknown and withdrawals are not possible, our assets have become nothing more than a piece of paper,” the user said.
JPEX said in an announcement early Wednesday morning that a referendum it conducted among its users concluded last week, with 68% voting in favor of the dividend plan.
“As a platform, we highly respect the decisions of our users,” it said, adding that it began “gradually implementing” the “DAO Shareholder Dividend Plan” from October 4.
“Our team is currently actively negotiating with third-party market makers, with the aim of quickly unlocking funds for our platform.” [adjustment] work. We also promise that after implementation of the program, all profits except the dividend portion will be used to buy back her DAO dividends held by users. ”
A DAO, which stands for “decentralized autonomous organization,” is an organization in which all members participate in decision-making through a voting mechanism on the blockchain.
Hong Kong police arrest duo returned from Macau over JPEX scandal
Hong Kong police arrest duo returned from Macau over JPEX scandal
The plan allows investors to convert their funds into dividends to DAO stakeholders at a 1:1 ratio, which can be received after two years. Those who added new assets under the plan were told they could receive double dividends.
According to JPEX, the dividends given to users will be in various forms, including listing fees for new platform tokens, transaction fees generated by spot and derivative products, and corresponding JPEX coins based on the percentage of shareholder dividends.
The company previously announced that it would distribute 49% of shareholder dividends worth a total of US$400 million (HK$3.1 billion).
Hong Kong to release names of virtual currency applicants as JPEX scandal worsens
Hong Kong to release names of virtual currency applicants as JPEX scandal worsens
But users previously told the Post they had no choice but to accept the plan because there was no option to vote against the proposal on the platform’s app.
The plan was also denounced as dubious by financial analysts, who said it would only be economically viable if the entity had a prospect of realizing it.
The uproar over Hong Kong’s biggest alleged financial fraud involving more than HK$1.5 billion in assets comes after the city’s securities watchdog last month named JPEX as an unauthorized platform and accused it of suspicious conduct. surfaced.
Hong Kong’s security chief vows to hunt down masterminds of JPEX cryptocurrency scandal
Hong Kong’s security chief vows to hunt down masterminds of JPEX cryptocurrency scandal
The company’s latest dividend move comes after police arrested two more people in connection with the incident on Wednesday morning, bringing the total number of suspects arrested to 20.
A person familiar with the incident said one of the two suspects, a 28-year-old man, was taken from an apartment in the Bloomsway housing complex in Tuen Mun, and officers also seized his gray Porsche.
The other suspect, a 29-year-old man, was arrested in Tai Po around noon.
Officers from the Commercial Crime Bureau also searched another location in Nam Hang Tseng in Yuen Long’s Datong district on the same day and towed away a white Porsche believed to have been purchased with the proceeds of crime, the same source added.
The force earlier announced it had arrested people “relatively close to the core” of JPEX and was pursuing other fugitives in connection with fraud and money laundering crimes.
Police have so far received more than 2,400 complaints against the trading platform.