JPEX faces first civil lawsuit! Victims in Hong Kong sue JPEX, demanding investigation of lost assets and compensation.

In September 2023, JPEX illegally promoted and operated in Hong Kong, resulting in a large number of victims; similar incidents were reported in Taiwan. According to a report by Ming Pao, two victims have recently filed a civil claim in the regional court, marking the first civil lawsuit against JPEX. Is Taiwan taking zero action against JPEX? JPEX has allocated tens of millions in budget in Taiwan, with spokespersons and sponsored media making substantial profits.

JPEX Victims Seek Compensation

Two victims in the case, Chan Wing Yan and Lee Sung Him Herbert, have instructed a law firm to pursue 240,000 Thai Baht USDT or 1.85 million Hong Kong dollars from JPEX Group and seven other defendants. According to Zhu Qiaohua, a successful claim in this lawsuit could set a strong legal precedent for other victims.

Defendants Include Multiple Companies and Individuals

Plaintiffs Chan Wing Yan and Lee Sung Him Herbert are targeting defendants including JPEX's Australian registered company "JP-EX CRYPTO ASSET PLATFORM PTY LTD," Hong Kong registered company "WEB3.0 TECHNICAL SUPPORT LIMITED," holders of three blockchain wallet addresses, Coingaroo over-the-counter exchange General Manager Zhao Jingxian, and any other individuals who assisted or were involved in the transfer of the plaintiffs' assets.

Seminar Investment Pitfall

The lawsuit states that between July and August last year, Chan Wing Yan attended a cryptocurrency seminar hosted by internet celebrity Lin Zuo and believed that JPEX was a licensed, legitimate, and trustworthy virtual asset trading platform. Subsequently, she opened three accounts on the JPEX platform in her and Lee Sung Him's names, and made multiple cryptocurrency deposits, including transferring approximately 6,220 USDT from the Binance platform to the JPEX account.

Internet Celebrity Referral Code Evidence

With Lin Zuo's recommendation, Chan Wing Yan used the referral code provided by him to purchase USDT on Coingaroo and, under Zhao Jingxian's guidance, deposited 1.85 million Hong Kong dollars into Zhao's Bank of China and DBS Bank accounts in exchange for an equivalent amount of Thai Baht.

JPEX Unauthorized Transfers

The lawsuit indicates that on September 13 last year, the Securities and Futures Commission issued a warning statement stating that JPEX was unlicensed and had not applied for a license. Subsequently, JPEX raised fees and restricted user withdrawals. On the same day, Chan Wing Yan discovered through a blockchain browser that the funds in her three accounts had been transferred without authorization, but the JPEX account still showed holdings of virtual assets, including JPC and JPP platform tokens, Bitcoin, and USDT, with a balance of approximately 264,000 USDT.

Demand for Defendants to Trace Funds and Provide Compensation

The plaintiffs request the court to declare that the first to fourth and seventh defendants breached their fiduciary duties and should hold about 240,000 USDT in trust for the two plaintiffs, trace the whereabouts of these assets, or provide corresponding compensation. The plaintiffs also ask the court to prohibit the defendants or their employees from dealing with these assets and propose alternative solutions, treating the platform account balances as loans and demanding repayment from the defendants.

Major Fraud Case JPEX: HK$1.6 Billion, 2,636 Victims

As of April 18 this year, the police received reports from 2,636 victims in the JPEX case involving approximately HK$1.6 billion, resulting in the arrest of 72 individuals and the freezing of assets worth about HK$228 million. The success of this lawsuit could serve as a reference for other victims seeking to recover their losses, further driving towards a resolution of the JPEX incident.