Embattled crypto exchange JPEX has pushed forward with a plan that can purportedly transition the platform right into a decentralized autonomous group (DAO) and convert person belongings to dividend shares with an incentive to lock them up for 2 years.
An Oct. 4 announcement from JPEX stated voting for its “DAO Shareholder Dividend Scheme” was accomplished on Sept. 28, claiming that 68% of users voted in favor for the scheme.
The scheme involves letting users convert their at the moment frozen belongings to DAO Stakeholder dividends at a 1:1 ratio, with JPEX providing a repurchase choice at 30% of the conversion value after a 12 months and a 100% repurchase after two years.
In an earlier announcement, JPEX stated users who agreed to the scheme will obtain dividends from JPEX by new token itemizing and buying and selling charges and would obtain a distribution of JPEX Coin (JPC) — the exchange’s native token — in proportion to shareholder dividends.
The scheme seems to be an incentive for users to maintain their funds on the embattled exchange, which has been experiencing liquidity points.
Nevertheless, a JPEX person — who was given anonymity — instructed the South China Morning Publish in an Oct. 4 report claims her belongings had been transformed seemingly with out her settlement or prior information.
She claims that she and different users discovered they may not withdraw their belongings following JPEX’s announcement to proceed with the plan.
The Hong Kong police and town’s Securities and Futures Fee have fashioned a joint job pressure to crack down on unlawful crypto exchange actions. In the meantime, the JPEX scandal continues to unfold. https://t.co/lOBRNlLs7m
— Cointelegraph (@Cointelegraph) October 5, 2023
“All of my [Tether] USDT and different cryptocurrencies are gone,” the individual stated. She claimed her belongings have been transformed to JPC — a low liquidity token with few use instances.
“Another users holding the tokens and different belongings have additionally discovered them transferred,” the person stated. “Given the unknown value and the impossibility of withdrawal, our belongings have now turn into simply waste paper.”
It’s not identified if the folks quoted within the report voted in favor of the plan however some JPEX users beforehand instructed the SCMP they’d been compelled to just accept the plan as there was no choice to vote towards it on its app.
JPEX didn’t instantly reply to Cointelegraph’s request for remark.
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JPEX’s dividend plan comes amid Hong Kong police arresting multiple people in reference to the exchange as it’s accused of operating an unauthorized crypto platform by the area’s securities watchdog.
Hong Kong police say the Dubai-based exchange defrauded no less than 2,300 folks of $178 million (1.4 billion Hong Kong {dollars}).
Earlier on Oct. 4, the area’s police and securities regulator launched a crypto-focused task force aiming to fight illicit actions by crypto exchanges.
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Cointelegraph By Jesse Coghlan JPEX crypto exchange launches asset-lock-up plan, as some users cry foul cointelegraph.com 2023-10-05 05:51:45
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