Two investors defrauded by the JPEX case in Hong Kong will receive $238,000 to make up for their losses.
A Hong Kong court sided with two investors who filed a civil suit against the defunct Dubai-based crypto exchange JPEX and an associated entity operating locally in the city. This suit marked the first one brought against JPEX after it shut down and Hong Kong authorities froze all its funds. The exchange has become infamous for orchestrating the biggest financial fraud in the region.
Hong Kong District Court Judge Grace Chow Chiu-man sided with the plaintiffs–Herbert Lee Sung-him and Chan Wing-yan—through a declaratory judgment. That implies no trial will occur, and the plaintiffs will walk away with settlements. The judge ordered 1.85 million Hong Kong dollars ($238,000) be recovered and paid to the two individuals in the form of 247,000 Tether (USDT) stablecoins.
The suit was brought by the two in June against JPEX, Hong Kong-based firm Web3 Technical Support, and others. It mentioned Chan making three USDT transfers to the exchange between July and August 2023. Upon transferring the tokens to JPEX, the assets became irrecoverable.
No Defendants Attended the Court Hearing
As the proceedings occurred, none of the defendants were to be seen in court. JPEX has shut down completely. However, Web3 Technical Support has not, and none of its representatives were sent to attend the hearing. Beyond what is owed to the plaintiffs, Web3 Technical Support will have to shell out over $15,000 in court costs.
Judge Grace Chow Chiu-man said, “As for the injunction sought against D2 (Web3 Technical Support), I am also satisfied that it is necessary and ancillary to assist in the recovery of the USDT Deposits, which I have held on the Ps’ (plaintiffs’) pleaded case were held on trust by D2 (together with D1 [JPEX]) for P1 (Chan).”
Joshua Chu Kiu-wah, the technology law specialist who is handling the case for the plaintiffs, mentioned to the South China Post that his clients would seek enforcement action to recover these funds from Hong Kong authorities.
He also stated, “Now that we have a court order against the exchange operator, the plaintiffs are in a position to work with third parties to enforce the court order, and in turn, be in a position to take actions towards, among others, assets under police freeze.”
JPEX has affected 2,600 users with its financial fraud, separating them from about 1.6 billion Hong Kong dollars. The region’s police froze about $230 million from the operation earlier this year.
