Hong Kong’s troubled cryptocurrency exchange JPEX has announced its intention to proceed with the DAO Stakeholder Dividend Plan. This decision comes amidst an ongoing investigation into a financial scandal worth over HK$1.5 billion ($191 million) and the arrest of several individuals associated with the platform.
The scandal first came to light when Hong Kong’s securities watchdog identified JPEX as an unlicensed platform and expressed concerns about suspicious activities.
JPEX previously proposed the DAO Stakeholder Dividend Plan to its users, and it was approved with 68% of the votes in favor. Under this plan, investors have the option to convert their assets into DAO stakeholder dividends at a 1:1 ratio, with the ability to claim these dividends two years later. JPEX predicts that users who add fresh assets to this plan could potentially double their payouts. The dividends will consist of revenue generated from listing fees for new platform tokens, trading fees from spot and derivative products, and corresponding JPEX coins based on the shareholder’s dividend proportion. JPEX has committed to distributing 49% of the stakeholder dividends, totaling a value of $400 million.
However, concerns have been raised among users regarding the conversion of their assets into JPEX’s own digital currency, JPC (JPEX coin). There is a lack of clear information regarding exchange rates and the inability to withdraw these assets, leaving users feeling uncertain about the value of their assets.
Criticism has been directed towards the proposed plan, with some users and financial analysts questioning its economic viability. JPEX has stated that it is exploring options such as peer-to-peer trading to enhance platform revenue and involve users in shaping the platform’s development and business strategies.
Some users have claimed that they were forced to accept the plan as there was no option to vote against it within the platform’s app. Reports have also emerged of users being unable to withdraw their funds due to the implementation of this dividend plan.
As investigations and arrests continue, the future of JPEX remains uncertain. Many are hopeful that law enforcement can intervene and safeguard user assets.