JPEX, a Hong Kong-based cryptocurrency exchange, has reportedly begun to restrict withdrawals by converting user balances to a non-withdrawable cryptocurrency, according to The South China Morning Post. An unidentified user claimed that her Tether (USDT) holdings along with those of others had been converted into JPC, JPEX’s own token, rendering them unable to withdraw their crypto balances. JPC has an unknown price and is not traded on any recognized exchanges.JPEX has officially confirmed its plans to transform into a decentralized autonomous organization (DAO) and has proposed a shareholder dividend scheme that will allow investors convert funds into DAO stakeholder dividends at a 1:1 ratio. Those dividends, which can be claimed after two years, include listing fees, trading fees, and JPEX cryptocurrency tokens.It is unclear whether the alleged forced conversions are related to earlier issues or to the DAO plan. JPEX has experienced extreme difficulties since the Hong Kong Securities and Futures Commission (SFC) published its first warning on Sept. 13 alleging that the exchange is operating without registration. Authorities have arrested at least 18 individuals involved with JPEX including social media influencers. Meanwhile, telecom companies have blocked access to the platform, and JPEX’s third-party partners have denied the company access to assets. JPEX has suspended a number of its own services and has told Hong Kong users to stop depositing assets while insisting that it will remain operational.
This News Article was automatically generated by Bob the Bot (AI)
This News Article was automatically generated by Bob the Bot (AI)
| Information | Details |
|---|---|
| Geography | Asia |
| Countries | 🇭🇰 🇨🇳 |
| Sentiment | negative |
| Relevance Score | 8 |
| People | None |
| Companies | JPEX, CoinGecko, None, South China Morning Post, Hong Kong Securities and Futures Commission |
| Currencies | JPEX Coin, Ethereum, Bitcoin, Tether |
| Securities | None |
