Successful Recovery of Funds in JPEX Fraud Case with Assistance from Hong Kong Police 230000 USDT Returned to Victims
The recent JPEX cryptocurrency exchange fraud case, which has stirred considerable public attention, has reached a significant ruling. Recently, the Hong Kong court ruled in favor of two victims of the JPEX fraud case, determining that the plaintiffs will recover $230,000 in losses from JPEX as per the judge’s decision.
Successful recovery of JPEX compensation court documents
The JPEX scandal involves an amount as high as $206 million.
At that time, the Hong Kong Securities and Futures Commission (SFC) issued a warning to the cryptocurrency exchange JPEX in September 2023, stating that the Dubai-based exchange was operating without a license. Subsequently, it was accused of transferring and misappropriating funds without notifying users, making it difficult for them to withdraw their money, and even informing users that to withdraw, they would need to pay a high fee of 999 USDT.
To retain customers, JPEX launched a “DAO Stakeholder Dividend Program,” offering a subscription cap of 400 million USDT, which could be exchanged (subscribed) using the cryptocurrency assets locked within the platform, but full value could only be redeemed after two years. JPEX also planned to entice users further by claiming that depositing new assets would allow them to subscribe to the DAO Stakeholder Program at half price.
As of April 18 this year, the Hong Kong police had received 2,636 complaints and conducted multiple arrests, including some celebrities and influencers who endorsed JPEX, with the total amount involved reaching approximately HKD 1.61 billion (about $206 million).
(Taiwan’s zero-action against JPEX? JPEX has invested tens of millions in Taiwan, benefitting endorsers and sponsored media)
Court represents recovery of $230,000; JPEX technology support company fails to appear
Recently, Hong Kong Judge Zhou Zhaowen ruled in support of the two victims of the JPEX fraud case, representing the plaintiffs in recovering HKD 1.85 million (approximately $230,000) to be paid in 247,000 USDT. This lawsuit was initiated in June against JPEX and the Web3 technology support company associated with JPEX in Hong Kong, arising from the plaintiffs transferring funds into their JPEX wallet in July and August 2023, only for the funds to be almost immediately transferred out, making recovery impossible.
However, JPEX has ceased operations, and the Web3 technology support company has not appeared in court. Judge Zhou stated in the ruling that an injunction must be placed against the Web3 technology support company to assist in recovering the funds held by JPEX on behalf of the victims.
(JPEX’s first civil lawsuit! Hong Kong victims sue JPEX, demanding related parties track down lost assets and provide compensation)
Successful recovery in the JPEX fraud case marks a significant breakthrough
The plaintiffs’ attorney, Zhu Zhenhua, indicated that the current ruling represents an important breakthrough for cryptocurrency victims seeking legal redress and provides a reference for other affected individuals. Attorney Zhu emphasized that due to the involvement of thousands of victims, the recovery process is quite challenging, and excessive delays may risk the statute of limitations. This case is currently seeking enforcement solutions 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 raised NT$16.3 billion globally, Chen Lingjiu’s endorsement case dismissed, partner Tiao Tiao Hu prosecuted)
