TL; DR
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So there’s an unregistered crypto exchange based in Hong Kong called JPEX that just collapsed and (allegedly) took everyone’s money with it.
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When news broke that JPEX might have some left with everyone’s money, the exchange’s owners immediately did two things (allegedly): put a stranglehold on its customers’ money by lowering the maximum withdrawal to $1,000 USD, while increasing all withdrawal fees to $999 USD; And disappeared.
Full story
We were just hanging out Donald And Austin by Namuntand they set us up for an amazing story that unfolded…
So there is an unregistered crypto exchange based in Hong Kong called JPEX.
It just collapsed and (allegedly) took everyone’s money.
And while the potential fraud in this story is reminiscent of FTX… it is MUCH more blatant.
How blatant? Check this out…
When news broke that JPEX might have some money left, the exchange’s owners immediately did two things (reportedly):
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Puts its customers’ money under control by lowering the maximum withdrawal to $1000 USD while increasing all withdrawal fees to $999 USD.
That is, if you were to withdraw the maximum €1000, you would get €1, after deducting costs.
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Than pulled a Harry Holt (i.e. disappeared). We mean, immediately spooky. For example, JPEX had a booth at Singapore’s Token2049 last week.
Day one they were there → the news broke that evening → day two the booth was empty. (As do their offices in Hong Kong and Shanghai, 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).