JPEx is unhappy with the accusations made by the Hong Kong Securities and Futures Commission and has put forward four points of rebuttal! But are their claims valid?

The Hong Kong Securities and Futures Commission and the police attended a press conference together on the 19th to explain the arrest operation in the JPEX case. However, the JPEX team expressed dissatisfaction with the content of the meeting and raised several objections. Are the counterarguments made by JPEX really valid?

Hong Kong police press conference on JPEX case: Issued warnings in July 2022, but JPEX continued to promote through media and social platforms.

Title One

In response to the various issues raised during the press conference, the JPEX team has provided specific responses to four points in their latest announcement:

1. JPEX Has Ceased Platform Trading Operations

Regarding the statement by the spokesperson that JPEX has ceased platform trading operations, JPEX stated: "At the current stage, the platform is gradually taking down the game lobby and wealth management functions in compliance with regulations... All trading pair functions on the platform have been operating normally."

In addition to indicating that the trading function has not been affected, JPEX also mentioned the unusually high withdrawal fees and stated that they are gradually reducing them.

According to data on the JPEX website, JPC, BTC, and ETH have all had trading volumes exceeding one billion US dollars in the past 24 hours. However, as a centralized exchange, JPEX cannot confirm how much of the trading volume comes from actual user trading behavior.

2. JPEX Did Not Contact the Hong Kong Securities and Futures Commission

Regarding the repeated denials by the Hong Kong Securities and Futures Commission that JPEX had contacted them, JPEX posted screenshots of four emails to express that they had been communicating with and seeking guidance from the Hong Kong Securities and Futures Commission from April 2022 to August 2023.

Three of the screenshots were sent between June and August of this year, with only one brief email from last April. Additionally, the personal information of the senders, Austin Archibald, Christine Johnson, and Desan TH Tsang, is not detailed, and no information about them can be found on the official website.

3. JPEX Allegedly Holds Customer Private Keys without Authorization

In response to the spokesperson's statement that the platform holds customer private keys without authorization, JPEX countered by stating that centralized exchanges, such as Binance, Coinbase, and Bybit, also hold customer private keys for the convenience and asset security of users.

While JPEX has its justifications, the exchanges they mentioned have not experienced the phenomenon of high withdrawal fees, making it difficult for users to withdraw funds smoothly.

4. Questions Regarding the Liquidity and Value of JPEX Platform Token JPC

The Hong Kong Securities and Futures Commission pointed out that JPC is only listed on JPEX, raising concerns about its liquidity and value. JPEX countered by stating that it is also listed on other exchanges, including MEXC, CoinW, and Lbank.

However, according to data from CoinMarketCap, the trading volume of JPC on centralized exchanges outside of JPEX is extremely low, and the liquidity scores are very low except for MEXC.

Compared to JPC's claimed daily trading volume of 160 million US dollars on its own platform, the liquidity on other exchanges is indeed negligible, supporting the validity of the liquidity concerns raised by the Hong Kong Securities and Futures Commission.