In September 2023, JPEX faced large-scale victims of illegal promotion and operation in Hong Kong and Taiwan. According to Ming Pao, two victims have recently filed a civil compensation case against JPEX in the regional court, becoming the first civil lawsuit against JPEX.
The plaintiffs, Chan Wing Yan and Lee Sung Him Herbert, have entrusted their lawyers to demand compensation of 240,000 Thai DAI (USDT) or 1.85 million Hong Kong dollars from JPEX Group and seven other defendants. Zhu Qiaohua stated that if this lawsuit can successfully claim compensation, it will provide a strong legal demonstration for other victims.
The defendants targeted by plaintiffs Chan Wing Yan and Lee Sung Him Herbert include “JP-EX CRYPTO ASSET PLATFORM PTY LTD,” a company registered in Australia, “WEB3.0 TECHNICAL SUPPORT LIMITED,” a company registered in Hong Kong, holders of three blockchain wallet addresses, Coingaroo’s general manager Zhao Jingxian, and any individuals who assisted or participated in the transfer of the plaintiffs’ assets.
The complaint stated that in July and August of last year, Chan Wing Yan attended a virtual currency seminar organized by internet celebrity Lin Zuo and believed that JPEX was a licensed, genuine, and trustworthy virtual asset trading platform. Subsequently, she opened three accounts on the JPEX platform in her and Lee Sung Him Herbert’s names and deposited cryptocurrencies multiple times, including approximately 6,220 USDT transferred from the Binance platform to the JPEX account.
Chan Wing Yan also used the referral code provided by Lin Zuo to purchase USDT on Coingaroo and, under the guidance of Zhao Jingxian, deposited 1.85 million Hong Kong dollars in cash or through bank transfers to Zhao’s Bank of Star and Li Hui Bank accounts in exchange for an equivalent amount of Thai DAI.
The complaint stated that on September 13th of last year, the Securities and Futures Commission issued a warning statement stating that JPEX was unlicensed and had not applied for a license. Subsequently, JPEX increased its transaction fees and restricted user withdrawals. On the same day, Chan Wing Yan discovered through a blockchain browser that the funds in her three accounts had been transferred without authorization. However, the JPEX account still showed holdings of virtual assets, including JPC and JPP platform coins, bitcoin, and USDT, with a balance of approximately 264,000 USDT.
The plaintiffs requested the court to declare that the first to fourth and seventh defendants violated their fiduciary responsibilities and must hold approximately 240,000 USDT in trust for the two plaintiffs and investigate the whereabouts of these assets or provide corresponding compensation. The plaintiffs also requested the court to prohibit the defendants or their employees from dealing with these assets and provide alternative solutions by treating the platform account balance as a loan and demanding repayment from the defendants.
As of April 18th of this year, the police have received reports from 2,636 victims in the JPEX case, involving approximately 1.6 billion Hong Kong dollars. 72 people have been arrested, and approximately 228 million yuan in assets have been frozen. The success of this lawsuit may provide reference for other victims to recover their losses and further promote the resolution of the JPEX incident.
(Source: Blocktempo)