Amid an ongoing investigation into a significant financial scandal worth over HK$1.5 billion ($191 million) and the apprehension of multiple individuals connected to the platform, Hong Kong’s troubled crypto exchange, JPEX, has declared its intent to proceed with the implementation of its DAO Stakeholder Dividend Plan.
The scandal initially surfaced when Hong Kong’s securities regulator identified JPEX as an unlicensed platform, raising concerns about suspicious activities.
Details of JPEX’s DAO Stakeholder Dividend Plan and User Response
JPEX had previously introduced the DAO (decentralized autonomous organization) Stakeholder Dividend Plan to its users. This proposal received approval, with 68% of the votes in favor, as announced by the exchange in a blog post.
Under this dividend plan, investors are presented with the opportunity to convert their assets into DAO stakeholder dividends at a 1:1 ratio, with the option to claim these dividends after a two-year period. The exchange emphasizes that users who contribute new assets to this plan may potentially experience a doubling of their payouts.
These dividends will take various forms, encompassing revenue generated from listing fees for new platform tokens, trading fees derived from spot and derivative products, and JPEX coins proportionate to the shareholder’s dividend stake.
JPEX has made a commitment to distribute 49% of the stakeholder dividends, amounting to a value of $400 million.
However, the shift of user assets into JPEX’s own digital currency, JPC (JPEX coin), without clear information regarding exchange rates and withdrawal capabilities has raised concerns among users. Some individuals have expressed the feeling that their assets have been rendered virtually inaccessible.
Uncertainty Surrounding JPEX’s Future Amid Ongoing Investigations
The DAO Stakeholder Dividend Plan has faced criticism from users and financial analysts who have questioned its economic viability. Users have alleged that they were coerced into accepting the plan, as there was no voting option against it within the platform’s application.
A report by the South China Morning Post highlighted complaints from users who found themselves unable to withdraw their funds under this dividend plan.
The unfolding situation is being closely monitored by experts and investors, with the hope that law enforcement actions can safeguard user assets and potentially halt the exchange’s operations. As investigations persist and more individuals linked to the case face apprehension, the outlook for JPEX remains uncertain.