The recent high-profile JPEX cryptocurrency exchange fraud case has achieved a significant breakthrough. A Hong Kong court has ruled in favor of two victims of the JPEX fraud case, ordering the recovery of $230,000 in losses from JPEX on behalf of the plaintiffs, according to the judge’s decision.
Successful Recovery of JPEX Compensation Court Documents
The JPEX scandal involves an amount as high as $206 million.
In September 2023, the Hong Kong Securities and Futures Commission (SFC) issued a warning to the cryptocurrency exchange JPEX, pointing out that the Dubai-based exchange was operating without a license. Subsequently, JPEX was accused of transferring and misappropriating funds without informing users, making it difficult for users to withdraw their funds. It even informed users that they would have to pay a hefty fee of 999 USDT to make withdrawals.
To retain customers, JPEX launched a “DAO Stakeholder Dividend Plan,” offering a subscription amount of 400 million USDT, which could be redeemed (subscribed) with the crypto assets locked within the platform, but full value could only be redeemed after two years. JPEX also planned to raise additional funds, claiming that depositing new assets would allow users to subscribe to the DAO Stakeholder Plan at a 50% discount.
As of April 18 of this year, the Hong Kong police had received a total of 2,636 complaints and conducted multiple arrests, including some celebrities and influencers who endorsed JPEX, with the involved amount reaching approximately HKD 1.61 billion (about $206 million).
(Taiwan’s Zero Action Against JPEX? JPEX Launched a Budget of Tens of Millions in Taiwan, with Endorsers and Sponsored Media Making Profits)
Court Recovers $230,000; JPEX Technical Support Company Fails to Appear
Recently, Judge Chow Siu-Man of Hong Kong ruled in favor of the two victims of the JPEX fraud case, ordering the recovery of HKD 1.85 million (approximately $230,000) to be paid in 247,000 USDT. This lawsuit was filed in June against JPEX and a Web3 technical support company related to JPEX in Hong Kong, stemming from the plaintiffs transferring funds into their JPEX wallets in July and August 2023, only for the funds to be almost immediately transferred out and unrecoverable.
However, JPEX has since ceased operations, and the Web3 technical support company did not send a representative to court. In her ruling, Judge Chow stated that an injunction must be imposed on the Web3 technical support company to assist in recovering the funds that victims had entrusted to JPEX.
(JPEX’s First Civil Lawsuit! Hong Kong Victims Sue JPEX, Demanding Related Parties Investigate Missing Assets and Compensation)
Successful Recovery in JPEX Fraud Case Marks a Major Breakthrough
The plaintiffs’ attorney, Joshua Chu, stated that the current ruling represents a significant breakthrough for cryptocurrency victims in obtaining legal relief and provides a reference for other affected victims. Attorney Chu emphasized that due to the involvement of thousands of victims, the recovery process is quite challenging, and delays may risk the statute of limitations. This case is currently seeking enforcement mechanisms to recover funds from approximately $29 million in assets frozen by the Hong Kong police.
Plaintiff’s Defense Attorney: Joshua Chu
(Endorsers Immune! JPEX Platform Raises NT$16.3 Billion Globally, Chen Lingjiu’s Endorsement Case Not Prosecuted, Partner Tiao Tiao Hu Prosecuted)