Clients File a Lawsuit Against the JPEX Crypto Exchange and Demand a Return of $500,000
Date: 2024-06-07 Author: Gabriel Deangelo Categories: BUSINESS
Clients of the cryptocurrency exchange JPEX have filed a lawsuit demanding the return of their funds in the amount of $500,000. The exchange is accused of fraud amounting to HK$1.6 billion ($208 million), which became one of the largest financial scams in the history of Hong Kong.
Allegations and Compensation Demands
JPEX's former clients, Herbert Lam Song Khim and Chan Wing Yang, filed the lawsuit in the Hong Kong District Court. They are seeking compensation for the stolen funds in the amount of $235,500 each. Lawyers say a civil lawsuit is the only way for victims to get their money back, so this case may be just the first in a series of further lawsuits.
History of Fraud
The fraud occurred in September 2023, when approximately $208 million was withdrawn from the wallets of JPEX clients. This case became the largest financial scam in Hong Kong. The problems began after Hong Kong's Securities and Futures Commission (SFC) warned of suspicious transactions on the JPEX crypto exchange in mid-September.
High Commissions and Mass Complaints
One of the reasons for customer dissatisfaction was the high withdrawal fees that JPEX charged users. The commission ranged from 955 to 999 tokens for every $1000, which caused a lot of complaints from users. More than 2,000 people have filed formal complaints about the exchange's illegal actions.
Investigation and Arrests
As a result of the investigation, Hong Kong law enforcement authorities made 73 arrests related to JPEX activities. Some of those arrested were released on bail, but the investigation continues. Authorities are trying to identify everyone involved in this large-scale scam and return the stolen funds to the victims.
The lawsuit against JPEX, filed by Herbert Lam Son Khim and Chan Wing Yan, could be the first in a long line of legal proceedings against the exchange. The victims hope that through the courts they will be able to get their money back and bring the perpetrators to justice. This case highlights the importance of thorough due diligence on cryptocurrency platforms and increased regulation of digital assets to protect investors.
