2023-09-20 22:54:29
JPEX Case | Lobbying users to redeem new products, the value of which dropped by 99% in disguise. Expert: It’s like a “secondary fraud”
[Yahoo News Report]After the cryptocurrency exchange JPEX was criticized by the Securities and Futures Commission last Wednesday (13th) for operating improperly, the Police Commercial Crime Investigation Bureau launched an operation from Monday (18th), and a total of 11 people have been arrested so far. JPEX has emphasized over the past week that it will continue to operate, and last night (20th) issued another announcement to launch the “DAO Stakeholders Dividend Plan”; if the plan is passed following a user referendum today (21st), users can use their accounts to Asset subscription “stakeholders dividend” (referred to as “stakeholders dividend” in the English announcement), but the value of the “dividend” is only equal to 1% of the value before exchange, a decrease of 99%. It will take two years before the platform can obtain the 100% dividend. 100% value buyback. JPEX continues to strive for new users and capital inflows: the announcement stated that if new assets are deposited, users can receive 1x more “dividends” through subscription. JPEX added content following making the announcement, stating that if the plan is passed, the platform will “complete adjustments” on May 1, 2024, and the withdrawal fee for Tether (USDT, each worth approximately US$1) will be 3 USDT.
Blockchain technology consultant Li Sicong told “Yahoo News” that JPEX’s plan is to delay time, like creating a “secondary fraud” in an attempt to “squeeze out all the assets and residual value” of users, and it is never recommended that outsiders continue to do so. Invest new funds into JPEX. Li Sicong suggested that the police should contact the Tether company as soon as possible to freeze JPEX’s assets on the blockchain.
Li Sicong said that even if JPEX’s plan is approved by the referendum, it is never recommended that users invest funds in the platform. (Leo YouTube screenshot)
Claiming 100% repurchase following two years
JPEX stated in the announcement that the portion available for exchange by users accounts for 49% of the total “stakeholder dividends”, with a total value of 400 million USDT, which is approximately US$400 million (equivalent to HK$3.12 billion). Existing users can subscribe and redeem at a 1:1 ratio. For example, if a user owns 10,000 USDT in the platform, he can redeem 10,000 “dividends”. However, JPEX stated that the 10,000 “dividends” received by users following redemption are equivalent to only 100 USDT.
For the “dividend” equivalent value following the user subscribes, it is only equal to 1% of the assets before the subscription. JPEX means that the platform will repurchase it at 30% of the value one year following the user subscribes; if the user can wait for 2 years, the platform will repurchase it at 30% of the value. 100% value buyback. Before the repurchase, users can trade “dividends” among themselves; but this also means that like other cryptocurrencies, the price of these “dividends” can rise or fall.
The platform claims that following receiving “dividends”, users can earn income through cryptocurrency listing fees, transaction fee income collected by the platform from users, and the platform currency JPC, but the announcement did not provide details such as the distribution time and frequency of these income. .
JPEX has stated that if users subscribe to redeem “stakeholder dividends”, the value of the “dividends” following redemption is only 1% of the original total asset value, and it will not be repurchased at 100% value until two years later. (Screenshot of JPEX web page)
Incentive new capital inflow “dividend” 1 times more
JPEX also stated that in order to attract new users and funds, it stated that if new assets are deposited, users can receive 1x more “dividends” through subscription. For example, if a user deposits 50,000 USDT as new assets, the “dividends” he can eventually subscribe and exchange with these new assets will be 100,000 USDT.
JPEX added new content following making the announcement, mentioning that if the plan is passed, “the platform will complete the adjustment at 00:00 on May 1, 2024”, and the USDT withdrawal fee will be 3 USDT. After the China Securities Regulatory Commission named JPEX last week, the platform restricted users to withdraw up to 1,000 USDT, and the withdrawal fee hovered between 950 and 999 USDT.
Li Sicong: JPEX is still trying to “cheat you one more time”
Blockchain technology consultant Li Sicong said in an interview with “Yahoo News” that JPEX’s latest plan is to send a message to users, “You can’t take away (the assets), leave it to me first.” The objective effect is only We will get more time and space for JPEX to prepare for the next step.
However, compared to the “full buyback in 2 years”, Li Sicong believes that the suggestion of injecting new assets to get 2 times the “dividend” is “surprising” and “it encourages you to invest in the original money (principal). “Add one more piece of new money (into the platform), and you will make a profit.” He described this as creating a “secondary scam.” The victim’s value is squeezed dry and no drop is left.”
Li Sicong said that JPEX has issued statements in recent days to refute the Securities Regulatory Commission, and emphasized that it will continue to operate in a “healthy manner” and is now using “new methods” to attract money, which reflects that the platform is “very confident” in itself and is not in a hurry to withdraw. The introduction of the above plan is even more I thought, “I’ll bury you for the last time.” “The China Securities Regulatory Commission and the police are doing tight things, and there is really no reason to spend more money to increase losses.”
The police and the China Securities Regulatory Commission held a press conference on Tuesday (September 19) to explain the operation once morest JPEX, but when asked who was behind it, the police said they were still investigating.
Li Sicong also mentioned that the tricky part of this incident is that since the police took action, the arrested persons were basically related to cryptocurrency exchange shops, and the mastermind behind JPEX has not been found so far; but Li believes that the people behind JPEX have been arrested earlier. There is evidence that JPEX mobilizes Tether on the blockchain. The Securities Regulatory Commission and the police can actually contact the Tether company at this stage to freeze these funds.
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