Bitrace: JPEX users average only withdraw 36.7 USDT, but there are 7.21 million USDT abnormal outflows

Causing significant losses to users in Hong Kong and Taiwan, the exchange JPEX, which is considered by Hong Kong as "conspiring to defraud," has suffered losses exceeding 5 billion New Taiwan dollars. According to the investigation by the online analysis company Bitrace, there have been numerous abnormal asset transfers from JPEX addresses that are not withdrawals by users.

JPEX, through high transaction fees and limiting withdrawal limits, effectively locks users' withdrawals while still claiming normal operations externally; Bitrace's online activity observation will shed light on JPEX's behind-the-scenes activities.

Key Points Recap: Taiwan takes zero action against JPEX? JPEX allocates tens of millions in budget in Taiwan, spokespersons and sponsored media profit handsomely

Advertisement - Please scroll down for more content

JPEX Abnormal Transfer of 7.21 Million USDT

Bitrace investigated three addresses of JPEX during the period from 2023/9/13 23:59:59 to 2023/9/20 23:59:59.

It was found that one address, "TLGiN6," transferred out 7.21 million USDT to seven addresses after 14 days, with the funds used for hoarding, exchanging, and transferring to risky addresses. Bitrace's analysis showed that 4.25 million USDT was transferred to a hoarding address for large storage, 380,000 USDT was cross-chain transferred, and 2.34 million USDT flowed into risky addresses. Bitrace inferred that these activities were not part of normal business operations and constituted abnormal outflows.

Another address, "TRzKj5," transferred out 1.5482 million USDT to eleven addresses after 14 days, and further imported into institutional addresses such as Simple Swap, FixedFloat, and Kraken. Bitrace speculated that since JPEX had previously transferred assets to these addresses, this activity might be part of normal business operations.

92.7 Million USDT Provided for User "1 U Withdrawal"

Bitrace stated that the address TPcXic was used as the source of funds for user withdrawals after 14 days, transferring a total of 92.7 million USDT to seven withdrawal addresses.

Due to JPEX setting the withdrawal limit at 1000 USDT, with fees slightly lower than 999 USDT, withdrawals were limited to 1-45 USDT.

Bitrace's analysis showed that from the 14th to the 20th, a total of 383 users made 6903 withdrawals, with an average withdrawal amount of 36.7 USDT.

Another Round of Harvesting? JPEX Still Discussing DAO Compensation Plan

JPEX even mentioned launching a DAO compensation plan, asking victims to continue depositing funds and subscribe to cryptocurrencies to receive compensation in two years.

From Bitrace's observations, this makes JPEX's scheme even more questionable.