What It Is
JPEX launched around 2020 as a global crypto exchange from Dubai, promoting itself heavily in Hong Kong, Taiwan, and Australia. TV ads, influencers, and OTC shops pushed its image as a licensed platform — but no valid licenses were ever held.
Markets, Products and Reach
- Spot trading across dozens of tokens
- Deposits and withdrawals in USDT and stablecoins only
- Promotion of its own token JPC (JPEX Coin)
- High-yield "Earn" and staking products heavily advertised
Fees and Deposits
Deposits were crypto-only. Complaints later revealed withdrawal fees as high as 95–99% of the amount, effectively trapping user funds.
Volume and Liquidity
Public trackers showed shrinking or absent liquidity as scandals unfolded. Activity was suspected to be driven by internal token mechanics rather than genuine user demand.
Red Flags and Legal Trouble
- No license from Hong Kong SFC or any recognized regulator
- September 2023: Hong Kong SFC warning against JPEX promotions
- Over 1,400 complaints filed, 66–70 arrests including influencers and staff
- Losses estimated at $150M–$205M across 1,600–2,600+ victims
- Reports of frozen funds, forced JPC conversions, hidden fees, and alleged user assaults
Lawsuits and Court Orders
In early 2024, a Hong Kong court ordered JPEX to return USDT 1.85 million to two customers. Operators were accused of transferring user deposits to unknown wallets without consent.
Deceptive DAO Rebrand
After regulatory action, JPEX tried pivoting into a DAO dividend scheme, asking users to lock funds for up to two years. Critics called it coercive, as JPC value collapsed to near zero.
Community Fallout
- Over 2,600 victims reported total losses exceeding HKD 1.6B (~USD 200M)
- Influencers faced arrest and reputational collapse
- The scandal eroded crypto trust in Hong Kong and drew global attention
Regulatory Reaction
The JPEX case pushed Hong Kong regulators to tighten licensing rules and publish lists of suspect platforms. Cooperation with law enforcement became more visible after this collapse.
Pros and Cons
What worked (briefly):
- Aggressive marketing and influencer campaigns
- High-yield products and JPC token boosted engagement
- Withdrawals and deposits functioned at first
What didn’t:
- No licenses or regulatory oversight
- Massive withdrawal fee hikes, blocked funds
- DAO pivot widely seen as fraudulent
- Thousands of users lost money, legal cases ongoing
Summary Table
| Component | Details |
|---|---|
| Launch Year | ~2020 |
| Headquarters | Claimed Dubai |
| Regulation | Unlicensed |
| Estimated Losses | $150M–$205M |
| Victims | 1,600–2,600+ |
| Status | Collapsed, under investigation |
Final Thoughts
JPEX went from flashy promotions to a fraud epicenter within months. Hidden fees, forced conversions, and lack of regulation doomed it. The DAO rebrand failed to restore trust, and legal fallout continues. The case stands as a textbook reminder: always verify licenses and beware of “too good to be true” yield promises.