JPEX Claims 70% of Voting Users Agree to Dividend Scheme; Lawmaker Warns of Debt Risks - Blockchain.News
News

JPEX Claims 70% of Voting Users Agree to Dividend Scheme; Lawmaker Warns of Debt Risks

JPEX, a virtual asset trading platform suspected of illegal operations, has proposed a DAO stakeholder dividend scheme. While 70% of participating users have agreed, lawmaker Huang Junshuo warns of potential debt risks. The platform is also under legal scrutiny, with ongoing investigations into fraud.


  • Sep 24, 2023 15:05
JPEX Claims 70% of Voting Users Agree to Dividend Scheme; Lawmaker Warns of Debt Risks

Key Takeaways

JPEX, a virtual asset trading platform, has initiated a DAO stakeholder dividend scheme.

70% of participating users have reportedly agreed to the scheme.

Lawmaker Huang Junshuo warns that converting from creditors to shareholders could entail debt risks.

The platform is under suspicion for fraud, with at least 11 arrests and nearly HKD 1.37 billion involved.

Scheme Details and User Participation

JPEX, a virtual asset trading platform suspected of operating without a license, according to ON.cc, recently proposed a "DAO Stakeholder Dividend Scheme" for user subscription. According to the scheme, users can convert their dividends into an equivalent amount of Tether (USDT) with a two-year lock-in period. The voting for this proposal started on September 22, and JPEX claims that 70% of participating users have agreed to it. However, the platform did not disclose the total number of voters.

Lawmaker's Warning

Accounting sector lawmaker Huang Junshuo, speaking on a radio program on September 23, warned that under this scheme, investors would only receive a maximum of 49% in dividends. This implies that the controlling stake still lies with JPEX. Huang cautioned that converting from creditors to shareholders does not necessarily mean the retrieval of investment funds. If the company incurs debt, investors could be liable.

Legal Troubles and Financial Risks

JPEX is currently under suspicion for fraud, with at least 11 people arrested and nearly 2,200 reports filed. The amount involved is approximately HKD 1.37 billion. The voting will continue until 8 PM on September 28 to decide whether to implement the scheme.

Financial Implications

The platform claims to offer 49% DAO stakeholder dividends, with a total value of approximately 400 million Tether (equivalent to about HKD 31.29 billion) for external subscription. Existing users can exchange their assets stored on the platform at a 1:1 ratio for dividends. The platform will buy back at 1% of the exchange price initially, 30% after one year, and 100% after two years.

Image source: Shutterstock