Cryptocurrency exchange JPEX has recently come under suspicion of “running away”, but there have been communities expressing their wariness of JPEX for quite some time now. Apart from the issues surrounding its trading operations, it has now been revealed that the funds behind JPEX may be involved in illegal activities.
The Hong Kong Securities and Futures Commission (SFC) issued a warning on the 13th stating that JPEX is not licensed by the SFC and has not applied for a license to operate a virtual asset trading platform in Hong Kong. Since then, JPEX has announced the suspension of withdrawals, imposing a hefty withdrawal fee of 999 USDT. Reports even suggest that the JPEX booth at Token 2049 during the Web3 Summit has been vacant for an extended period.
Following the incident, many cryptocurrency communities claimed that they had already questioned the operations of this exchange. They had been warned about the high annual interest rate of over 20% which appeared suspicious and indicative of potential fraud. Therefore, the recent revelations about JPEX did not come as a surprise to them.
Further investigations into JPEX have shed light on several concerning aspects of the exchange. One significant claim made by the community is that JPEX advertised the absence of financing rates in permanent contract transactions as a major advantage. They argued that this was a unique feature not found in other major exchanges like Binance, OKX, and Bybit. However, critics within the community have dismissed this claim, accusing JPEX of merely copying price trends from other exchanges and betting against its users.
Additionally, reports from anti.scam.crypto.hk and community members have highlighted peculiarities surrounding the listing of certain trading pairs on JPEX. Users have been unable to withdraw or deposit certain coins such as WLD and PEPE. Furthermore, the price of WLD on JPEX has been found to be identical to its price on Binance, leading to doubts about the authenticity of JPEX’s trading activities.
Moreover, concerns regarding the origin of JPEX’s funds have also surfaced. Bitrace, a blockchain data analysis company, revealed that the flow of money behind a TRON address linked to JPEX is questionable. One of the hot wallet refill addresses associated with JPEX has seen risk capital inflow of over 190 million USDT in the last 20 months. This capital has been categorized as “black and gray assets”, “online gambling”, and “money laundering”.
It is important to note that Tether, a prominent stablecoin, has the ability to freeze USDT held by suspicious wallets when investigations into problematic exchanges and fraud cases arise. This adds another layer of concern to the situation surrounding JPEX.
In conclusion, the JPEX cryptocurrency exchange has raised suspicions not only due to its questionable trading operations but also its involvement in potentially illegal activities. The lack of a regulatory license from the Hong Kong Securities and Futures Commission, the suspension of withdrawals, and the peculiarities observed in trading activities have further fueled these concerns among the cryptocurrency community. The origins of JPEX’s funds have also come under scrutiny, with allegations of money laundering and connections to illicit activities.
Cryptocurrency exchange JPEX has been suspected of “running away” recently, but some communities have expressed that they have been wary of JPEX for a long time. As well as problems with the trading operations behind it , it was also revealed today that the money behind it could be used in illegal ways.
(Preliminary summary: The Hong Kong Securities Regulatory Commission named JPEX: it did not obtain a regulatory license, provided false statements … and raised six major doubts)
(Background attachment: Warning! JPEX withdrawal fee is 999 mg, withdrawals were temporarily suspended, and the currency of the JPC platform plunged)
The Hong Kong Securities and Futures Commission (SFC) only warned on the 13th that the cryptocurrency exchange JPEX is not licensed by the SFC and has not applied for a license from the SFC to operate a virtual asset trading platform in Hong Kong Starting yesterday, JPEX reported that it had suspended withdrawals. The withdrawal fee is 999 USDT, and there are even reports that the JPEX booth at Token 2049 at the Web3 Summit has been empty for a long time.
After the incident, many cryptocurrency communities said that they had already questioned the operation behind this cryptocurrency exchange, and provided an annual interest rate of more than 20% to warn them to prevent fraud , and they would not feel special about the Accident.
Extended reading: Hong Kong 01 broke the news earlier: JPEX registered in several countries as a suspected “human head company” and falsely advertised that it had relevant licenses
The contract does not have a funding rate, and the transaction data is on Binance
The community pointed out that JPEX originally promoted the feature of not charging users a financing rate in permanent contract transactions, claiming that this was to help users save transaction costs and make it easier to users make money, and even pointed out that Binance, OKX , and Bybit all have funding rates, and are also likely to participate. Therefore, JPEX claims that it does not have a funding rate as a major advantage, but in fact it is criticized by the community as “a major innovation in the industry.”
In addition, anti.scam.crypto.hk also broke the news that when JPEX listed the WLD (Worldcoin) trading pair in mid-August, it was found that the approach was different from other exchanges. On JPEX, users can’t withdraw or deposit WLD coins, and it’s not just WLD. The same goes for the dark horse meme coin PEPE. JPEX users also can’t withdraw PEPE coins .
In addition, the price of WLD on JPEX is identical to the price of WLD on Binance As long as there is a short delay, the price of the token on JPEX will be identical to the price data on Binance. has sparked community doubts about whether JPEX has As for real trading concerns, some people believe that JPEX only links data from other exchanges and copies price trends to bet against users.
JPEX transaction scam｜Source: anti.scam.crypto.hk IG
Analysis platform: JPEX funds used for money laundering
Not only is the operation of the exchange shady, but problems with the money behind JPEX were also revealed today. Earlier, blockchain data analysis company Bitrace tweeted that the flow of money behind the TRON address related to JPEX is opaque. One of its hot wallet refill addresses has flowed in more than 190 million USDT in risk during the last 20 months, accounting for 22.04% It is classified as risk capital, and the types of risk are identified as “black and gray assets”, “online gambling” and “money laundering”.
It is understood that Tether has a freezing program code on the USDT smart contract. In the past, when the financial flow was related to problematic exchanges and fraud cases, Tether officials could use the background to change the USDT held by the relevant suspicious wallets to Assist with the investigation process.
The Securities and Futures Commission of Hong Kong recently warned that #JPEX It is an unregulated virtual trading platform and it clarifies that none of the entities under the JPEX Group have applied for a license from the Securities and Futures Commission to operate in Hong Kong.
a # Bitters An examination of on-chain funds shows,#JPEX The relevant address is seriously contaminated with funds and one of its hot wallet top-up addresses has seen an inflow of more than 190 million USDT at risk in the last 20 months.# Bitters Some data will be revealed through this thread 👇
— Bitrace (@Bitrace_team) September 15, 2023
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