Cryptocurrency platform JEPX was involved in a fraud case, and the police have arrested 11 people so far. The on-chain data analysis company pointed out that after the CSRC named and warned, JPEX had abnormal funds transferred out, and more than 721.1 million USDT (US dollar equivalent stablecoins) were transferred within a week, some of which were transferred to risk addresses; Another company analyzed that JPEX transferred five cryptocurrencies, with a total market value of about HK$6799.<> million.
Although JPEX announced that it would introduce a compensation plan for stakeholder dividends and made a referendum on it, some bitter owners said that the referendum could not choose to "not accept" the plan, believing that JPEX forced users to accept it.

Cryptocurrency Investigative Report・Page|JPEX involved in fraud Lin Zuo, Chen Yi and other currency circle Internet celebrities were arrested

In recent years, JEPX, a cryptocurrency platform trading platform that has sold advertisements in many places in Hong Kong, was involved in fraud and was investigated by the Securities and Futures Commission police. (Profile photo / Photo by Lo Hsien Liang)

The on-chain data company "Bitrace" pointed out on social platforms on Thursday (22nd) that the CSRC warned JPEX by name on Wednesday (13th) evening that JPEX had abnormal fund transfer behavior.

Bitrace analyzed the data of two JPEX fund transfer addresses and one user withdrawal address, and pointed out that one of the transfer addresses (TLGiN6) transferred more than 20.721 million USDT (US dollar equivalent stablecoins, also known as Tether) after Thursday (<>th), that is, after the CSRC named and warned them.

More than 234.425 million of them were forwarded to at-risk addresses through transit addresses; 38.<> million were transferred to addresses where cryptocurrencies were hoarded, and more than <>,<> were exchanged across chains. Bitrace believes that the transferred funds are not the normal business activities of the user withdrawing coins or the platform, and are abnormal outflows.

Bitrace also pointed out that between September 9 and 14, 20 users initiated 383,6903 withdrawal transactions on JPEX, but the user's withdrawal address only transferred 927.<> million USDT to seven withdrawal hot wallet addresses.

▼September 9 JPEX police arrest operation▼


LegCo member Ng Kit Chong also released the on-chain data provided by Hong Kong Data Infinity Technology Co., Ltd., that is, the transaction record of virtual assets on the blockchain. The data shows that the CSRC warned JPEX by name that from the next day (14th), JPEX has more than 300 million USDT, which flows out to other exchanges and other addresses through TRON chain transactions; About 1670,5 coins were traded in Thai dollars (ETH) on-chain via Ethereum and streamed to <> other accounts.

The data shows that between September 9 and 12, the largest number of cryptocurrencies were transferred out of JPEX on September 21. By Thursday (9st), JPEX transferred five cryptocurrencies, with a total market value of about HK $18.21 million.

BTC transferred
from JPEX between September 9 and 12: 21.126 BTC (about HK$6566246.263 million) ETH: 1678.32 ETH (about HK$2080.20 million)
ERC1752349-USDT: 786.20 ERC1360-USDT
(about HK$20.226225 million).
ERC3503-USDC: 20.176 ERC20-USDC (about HK$16560371.59 million) TRC20-USDC: 1.2900 TRC<>-USDT (about HK$<> million)

LegCo member Ng Kit Chuang called for investors to buy and sell on compliant trading platforms. (Profile photo / Photo by He Baijia)

Other jurisdictions may require issuers to freeze illicit assets

Wu said that he did not trace the whereabouts of the 1.6799 million Hong Kong dollar worth of JPEX cryptocurrency was transferred, so it was impossible to know whether the behavior was abnormal. He pointed out that in other jurisdictions, law enforcement agencies can require companies issuing cryptocurrencies to freeze assets suspected of being illegally acquired, but I don't know if Hong Kong has relevant practices, and hopes that law enforcement agencies can protect the assets of suffering owners by any means. He also called for investors to buy and sell on compliant trading platforms.

As for the 10 trillion cryptocurrency JPC issued by JPEX, the on-chain data released by Wu Jezhuang shows that 99.52% of JPCs are concentrated in four addresses, and no more than 0.5% are located outside the other.


Dividends by stakeholders are frozen for at least two years

JEPX announced the "compensation plan" on Wednesday (20th), launching the "Stakeholder Dividend Plan", which will distribute 49% decentralized (DAO) stakeholder dividends, with a total value of 4 million USDT that can be subscribed and exchanged, and existing users can exchange assets deposited on the platform at a ratio of 1:1 for DAO stakeholder dividends, and can be repurchased at 100% of the exchange price after two years.

Casting does not accept infinite reincarnation

The platform launched a referendum on the relevant plan on Thursday (21st), but some bitter owners told "Hong Kong 01" that the referendum was "good" and could not vote for the election and did not accept the plan. Even if the "do not accept" button is pressed, the voting option will still pop up on the webpage again, and after receiving "do not accept" for the second time, only one "agree" button will pop up on the page, like "forcing you to agree", questioning the falsification of the referendum.

According to the video provided by the interviewee, after pressing the "do not accept" button, the page pops up again with the option, indicating that the user can consider it again. After the user presses the "Accept" button for the second time, the page pops up with the word "Success", but the page still displays "Can consider whether to accept this plan again" and a "Agree" button. The film shows that only 29% of users accepted the plan at the time.

▼On September 9, the police confessed the JPEX case▼

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