Asia’s Version of FTX
TL;DR
So there's this unregistered crypto exchange based out of Hong Kong, called JPEX, which just collapsed, taking everyone's funds along with it (allegedly).
When the news started to break that JPEX might have up an left with everyone's money, the owners of the exchange immediately did two things (allegedly): Put a strangle hold on its customers' funds, by lowering the max withdrawal to $1000 USD, while upping any and all withdrawal fees to $999 USD; and disappeared.
Full Story
We were just hanging out with Donald and Austin from Aftermint, and they put us on to one hell of an unfolding story...
So there's this unregistered crypto exchange based out of Hong Kong, called JPEX.
It's just collapsed, taking everyone's funds along with it (allegedly).
And while the potential fraud in this story feels reminiscent of FTX...it's WAY more blatant.
How blatant? Check this out...
When the news started to break that JPEX might have up an left with everyone's money, the owners of the exchange immediately did two things (allegedly):
Put a strangle hold on its customers' funds, by lowering the max withdrawal to $1000 USD, while upping any and all withdrawal fees to $999 USD.
I.e. If you were to withdraw the max $1000, you'd get $1 after fees.Then pulled a Harry Holt (i.e. disappeared). We mean, straight up ghosted. E.g. JPEX had a booth at Singapores Token2049 last week.
Day one, they were there → the news broke that night → day two, the booth was empty. (As were their Hong Kong and Shanghai offices, apparently).
Moral of the story: we need clear and fair regulations enforced across the global crypto industry.
(Ideally looser than Gary Gensler's and tighter than Hong Kong's).