March 27, 2024
JPEX Crypto Exchange Introduces Asset Lock-Up Program Amid User Complaints
Policy & Regulation

JPEX Crypto Exchange Introduces Asset Lock-Up Program Amid User Complaints

JPEX, the embattled crypto exchange, has taken a significant step forward in its plan to transform itself into a decentralized autonomous organization (DAO) and convert user assets into dividend shares with a two-year locking incentive. In an announcement made on October 4, the exchange revealed that the voting process for its “DAO Shareholder Dividend Scheme” was finalized on September 28, with approximately 68% of users expressing support for the scheme.

Under this initiative, users have the option to convert their currently locked assets into DAO Stakeholder dividends at a 1:1 ratio. JPEX has also offered a repurchase option at 30% of the conversion price after one year and a full 100% repurchase after two years. Additionally, users who opt for this scheme are promised dividends from JPEX, which will be generated through new token listings and trading fees. They will also receive a distribution of JPEX Coin (JPC), the native token of the exchange, in proportion to their shareholder dividends.

The scheme is designed to incentivize users to keep their funds on the exchange, which has been grappling with liquidity problems. However, an anonymous JPEX user revealed to the South China Morning Post on October 4 that her assets appeared to have been converted without her consent or prior knowledge. She asserted that she and other users were unable to withdraw their assets following JPEX’s announcement to proceed with the plan. She stated, “All of my [Tether] USDT and other cryptocurrencies are gone,” and claimed that her assets were converted into JPC, a token with limited liquidity and utility. She expressed concern, stating, “Some other users holding the tokens and other assets have also found them transferred. Given the unknown price and the impossibility of withdrawal, our assets have now become just waste paper.”

It remains unclear whether the individuals quoted in the report had voted in favor of the plan. Some JPEX users previously reported to the SCMP that they felt compelled to accept the plan as there was no option to vote against it within the exchange’s app.

JPEX’s dividend plan unfolds against the backdrop of multiple arrests by Hong Kong police in connection with the exchange, as it stands accused of operating an unauthorized crypto platform according to the region’s securities watchdog. The Hong Kong police have alleged that the Dubai-based exchange defrauded at least 2,300 individuals of $178 million (1.4 billion Hong Kong dollars).

Earlier on October 4, the region’s law enforcement and securities regulatory agencies launched a crypto-focused task force aimed at combating illicit activities associated with crypto exchanges.

Image by Freepik

Related posts

Indonesia’s Crypto Regulator Calls for Dual Taxation on Crypto Transactions

Harper Hall

Public Consultation Launched in the UK to Evaluate Proposed Ban on Cold Calls Based on Crypto

Eva Moore

Craig Wright Faces Intense Cross-Examination Amid Fresh Allegations

Cheryl  Lee

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More