Hong Kong exchange JPEX is trying to redefine itself as a DAO after a police investigation into an estimated $182 million crypto theft and operating without a license.
JPEX Exchange Rebrands to a DAO, User Funds Blocked For Two years
Hong Kong exchange JPEX is trying to redefine itself as a DAO after a police investigation into an estimated $182 million crypto theft and operating without a license. In a new blog post, JPEX claimed 68% of users supported a “DAO Shareholder Dividend Scheme” which will convert user funds to locked DAO dividends and future profit voting rights.
Hong Kong authorities have made 20 arrests related to the scandal so far. Police suspect JPEX operated without the required license and suspect losses of $182M from over 2,400 complaints. While alluding to challenges, JPEX avoided mentioning its legal troubles or that their leaders are wanted by the authorities.
Hong Kong regulators are developing a framework to identify those responsible, close unlicensed crypto platforms and educate the public. This comes as Hong Kong is positioning itself as a Web3 hub and introducing more crypto-friendly regulations. HKEX recently announced the launch of a blockchain settlements platform for equities.
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