JPEX Converts Users Assets to Shares Causing Users to Panic

Troubled crypto trading place, JPEX, is making a bold move to become a DAO (Decentralized Autonomous Organization) and change user assets into something called dividend shares, encouraging people to keep their money with them for two years.

JPEX announced on Oct. 4 that their "DAO Shareholder Dividend Scheme" was approved by 68% of users in a vote that finished on Sept. 28. This plan means users can turn their now-stuck assets into DAO Stakeholder dividends, with a promise from JPEX to buy them back at 30% of their value after one year and the full value after two years.

Before, JPEX mentioned that those who accept the plan will get dividends (a share of the profits) through fees from new tokens being listed and traded on their platform. They will also get a distribution of JPEX Coin (JPC), which is the exchange's own token, in line with the dividend shares.

Even though this plan seems like an incentive for users to leave their funds with JPEX during tough times, one user, speaking anonymously (not revealing her identity). told the South China Morning Post on Oct. 4 that her assets seemed to be changed without her permission.

"I can't take my [Tether] USDT and other cryptos out," she explained, noting that they were changed to JPC – a token with low use and demand. "Our assets have now become just waste paper because we can’t do anything with them," she added.

Some JPEX users told the SCMP (South China Morning Post) that they felt forced to accept the plan since there was no way to say no to it on the app.

Amidst all this, JPEX is facing legal problems. Hong Kong police have arrested several people linked with the exchange as it's accused of running a crypto platform without the proper permissions and taking at least $178 million from at least 2,300 people. On Oct. 4, local police and the securities regulator began a special task force with the aim of  fighting illegal activities by crypto exchanges.