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Our weekly roundup of news from East Asia curates the industry’s most important developments.

JPEX scandal grows to over $166M 

Last week’s Token2049 conference in Singapore was a life-changing experience for some; for others, the event did not meet expectations — but for a select group of individuals, the imminent prospect of being pursued by law enforcement meant they had to abandon their booths and flee the event.

On Sept. 21, local news outlets reported that Hong Kong police had arrested 11 individuals linked to troubled cryptocurrency exchange JPEX on charges of fraud and operating an unlicensed virtual assets exchange. More than 2,000 users are estimated to have been affected, with $1.3 billion Hong Kong dollars ($166 million) involved. Police allege users’ assets have been embezzled by JPEX staff.



In a dramatic raid on Sept. 13 — day one of the conference — Hong Kong police arrested key JPEX executives, leading staff to abandon its corporate booth. The exchange subsequently applied for voluntary deregistration with the Australia Securities & Investment Commission, disclosing that its Australian entity had little assets left. After the news broke, JPEX reportedly raised its withdrawal fees to 999 USDT per transaction to prevent capital flight.

In an announcement on Sept. 20, JPEX said that 400 million Tether (USDT) worth of users’ deposits would be eligible for redemption. However, the catch is that the funds can only be redeemed starting in late 2025. The firm stated that due to the ongoing law enforcement investigation, its telecom service providers and asset custodians have frozen applicable services.

JPEX booth advertisement posted the day before the exchange was raided by police. (Facebook)
JPEX booth advertisement posted the day before the exchange was raided by police. (Facebook)

In a press conference, John Lee, the chief executive of Hong Kong, said, “This incident highlights the importance that when investors want to invest in virtual assets, then they must invest on platforms that are licensed.” Founded in 2019, JPEX heavily promoted its presence in Hong Kong with brand banners on local metro stations and taxis, as well as soliciting the help of celebrities such as singer Julian Cheung.

Before its collapse, JPEX’s marketing included free vouchers to any users who signed up, offers of up to 300X trading leverage, and stablecoin staking yields exceeding 30% per annum. The firm has since suspended all of its services despite previous assurances that “it will not collapse.”

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Mt. Gox trustee creditors, trolled? 

Users of defunct Japanese crypto exchange Mt. Gox were dealt another setback on Sept. 21, when it was announced that bankruptcy trustees would delay payment deadlines by another year. If executed, this means that the bankruptcy process would have stretched out for 10 years (if not more) since a devastating hack obliterated the exchange in 2014.

Mt. Gox victims protesting over the excruciating delay in repayments (Finance Feeds)
Mt. Gox victims protesting over the excruciating delay in repayments (Finance Feeds)

In April, Mt. Gox set a final deadline for creditors to register a claim against the defunct crypto exchange. A target date of October 2023 was then set for the repayment of users’ assets. The registration process has been extended periodically for several years. Despite previous reassurances, Mt. Gox trustees wrote

“Given the time required for rehabilitation creditors to provide the necessary information, and for the Rehabilitation Trustee to confirm such information and engage in discussions and share information with banks, fund transfer service providers, and Designated Cryptocurrency Exchanges etc., involved in the repayments, which are required before the repayments can be made, the Rehabilitation Trustee will not be able to complete the repayments above by the deadline.”

Mt. Gox was the biggest Bitcoin exchange in the world when it filed for bankruptcy in 2014 after discovering that 850,000 of its customers’ Bitcoin (BTC) had been stolen after years of subtle siphoning. The exchange has since recovered around 200,000 BTC. The funds have been held in trust for the creditors, with 162,106 BTC ($4.38 billion) sitting in wallet addresses tracked by Token Unlock. At the time of the hack, the price of Bitcoin was around $580 apiece, meaning that many creditors would have realized gains on investment despite over half of their BTC being stolen.

In its communication to creditors, the trustee stated that payments could come as soon as the end of this year for registered creditors. However, like for the past decade, a caveat clause was included (as always): 

“Please note that the schedule is subject to change depending on the circumstances, and the specific timing of repayments to each rehabilitation creditor has not yet been determined.”

Singaporean fintech raises $10M 

Singaporean firm DCS Fintech Holdings has received a $10 million investment from Foresight Ventures for creating crypto-fiat on-ramping solutions. 

According to the Sept. 21 announcement, DCS, which originally stood for “Diners Club Singapore,” the first credit card issuer in the city-state nation, will use the capital to develop “new payment solutions that provide a seamless connection between Web2 and Web3.” Its subsidiary, DCS Card Center, is regulated by the Monetary Authority of Singapore for issuing credit cards. CEO Karen Low commented:

“The rapid evolution of Web3 today necessitates the bridging of payments into Web2, while the rise of fintechs is democratizing payments for consumers, creating demand for greater variety and refreshing experiences. These are opportunities that DCS is well-poised to seize.”

As part of DCS’s initial foray into Web3, it has developed a Singaporean-dollar-backed payment token, which is also dubbed “DCS,” for the financial service sector. 

Also based in Singapore, Foresight Ventures is a $400 million fund investing in Web3, AI and blockchain-related entities. In May, the firm pledged an additional $10 million for its Web3 accelerator, bringing the total to $20 million. The firm also backs the $120 million Sei Ecosystem Fund.

Zhiyuan Sun

Zhiyuan Sun is a journalist at Cointelegraph focusing on technology-related news. He has several years of experience writing for major financial media outlets such as The Motley Fool, Nasdaq.com and Seeking Alpha.

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Sunak claims Starmer could ‘put Brexit in peril’ – as Labour warn voters against election complacency

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Sunak claims Starmer could 'put Brexit in peril' – as Labour warn voters against election complacency

The Conservatives have claimed a Labour government could “put Brexit in peril” in statements and op-eds published on the eighth anniversary of the EU referendum.

Rishi Sunak has made a series of claims about rival Sir Keir Starmer and his intentions if Labour get into government – claiming he “would recommit us to free movement of EU citizens, taking thousands more illegal migrants and binding our businesses again in Brussels red tape”.

“Keir Starmer has never believed we can succeed as a sovereign country and has tried to overturn the result time and time again,” he said. “Now he has committed to years more wrangling the EU and abandoning all our hard-won freedoms like the ability to strike more trade deals and cut more red tape.

“Make no mistake, Brexit would be in peril under Labour.”

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Rishi Sunak speaking during a visit to a bathroom supply company near Rhyl, Wales.
Pic: PA
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Sunak and three other Conservatives have launched Brexit-related attacks on Labour. Pic: PA

Business Secretary Kemi Badenoch has claimed Starmer and Labour “have never believed in Britain’s ability to forge its own path”.

“Instead of using the opportunities, Starmer wants to renegotiate the Brexit deal, taking us back to square one of being a rule-taker from Brussels,” she added.

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“Only the Conservatives will continue to take the bold action required to build a secure, independent future for our country.”

What have Labour said about Brexit and the EU?

Sir Keir last month told Sky News he plans to seek “a better [Brexit] deal than the one that we’ve got” if elected in next month’s general election.

“I don’t think many people look at that deal and think it’s working very well,” he said of the current trade arrangements. “We were promised an oven-ready deal and we got something that was, frankly, half-baked.”

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‘We need a better Brexit deal’

The Labour manifesto makes one mention of Brexit. It reads: “With Labour, Britain will stay outside of the EU. But to seize the opportunities ahead, we must make Brexit work.”

“We will reset the relationship and seek to deepen ties with our European friends, neighbours and allies,” it continues. “That does not mean reopening the divisions of the past.

“There will be no return to the single market, the customs union, or freedom of movement.

“Instead, Labour will work to improve the UK’s trade and investment relationship with the EU, by tearing down unnecessary barriers to trade.”

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Meanwhile, Home Secretary James Cleverly has claimed Labour will “open the door to 100,000 illegal migrants” in a piece for the Sunday Telegraph – which a Labour spokesperson has already labelled “desperate lies from a party that has totally failed to control our borders or manage the asylum system”.

And in The Times, Levelling Up Secretary Michael Gove has said in a new interview: “I think one of the biggest question marks over Labour is what they would do in terms of relations with the EU because it is on the record that Starmer did everything he could to frustrate a Brexit deal and to secure a second referendum.

“I was in the room with him when we were trying to negotiate an agreement between Labour and the Conservatives under Theresa [May] to secure a Brexit deal.”

Meanwhile, as polls continue to predict Labour are heading for a comfortable majority, their national campaign co-ordinator has reminded the public: “Change will only happen if you vote for it.”

Labour’s national campaign coordinator Pat McFadden wrote in the Observer: “There is a danger that the debate in this election becomes consumed by polls and specifically by the idea that the outcome is somehow pre-determined… No way is this election a done deal.

“The headlines about the clutch of MRP polls disguise a huge level of uncertainty.”

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SEC drops Ether probe but still seeks billions in penalties from Ripple: Hodler’s Digest, June 16-22

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SEC drops Ether probe but still seeks billions in penalties from Ripple: Hodler’s Digest, June 16-22

The U.S. Securities and Exchange Commission has dropped its case against Ether. However, in another crypto case, the regulator still demands billions in penalties from Ripple.

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Unite union boss Sharon Graham says Labour should ‘give Britain a break’ and borrow more to help ‘hurting’ workers

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Unite union boss Sharon Graham says Labour should 'give Britain a break' and borrow more to help 'hurting' workers

Union boss Sharon Graham has said she does not agree with Labour’s fiscal rules and the party should borrow more to invest.

Speaking to Sky News’ Sunday Morning With Trevor Phillips in an interview that will be broadcast in full tomorrow, the Unite general secretary said other countries with growing economies have a larger debt-to-GDP ratio than the UK, “so there is wiggle room”.

Rachel Reeves, the shadow chancellor, has promised to retain the Tories’ commitment that debt as a proportion of GDP must be on track to fall in five years if Labour win the election on 4 July.

She has ruled out borrowing to fund day-to-day spending, saying her focus will be on reforms to grow the economy.

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But Ms Graham said: “I don’t agree with Rachel Reeves in terms of what has been said about the plans on growth.

“If you look at other countries – in France, their debt to GDP is 112%. In America, where the economy’s growing, it’s 130% debt to GDP. Ours is around about 99%. We have wiggle room. Give Britain a break.”

The union leader said that workers “are literally hurting beyond anything that you could comprehend” due to the cost of living crisis.

She added: “We need the straitjacket off a little bit, get some wiggle room there.

“Borrowing to invest is not the same as other borrowing. It’s borrowing to invest.”

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Reeves: ‘No plans’ for Labour tax increases beyond manifesto

Unite is Labour’s largest union donor but it has refused to endorse the party’s general election manifesto.

Ms Graham has been an outspoken critic of Sir Keir Starmer in the past, previously warning him not to “limp into Number 10” and calling on him to be bolder with his pledges, by nationalising energy, for example.

There has also been a row about his plans to phase out oil and gas licenses in the transition to clean energy, which Unite has called a “ban without a plan” and said threatens job losses.

And more recently Unite accused Labour of watering down its package of workers’ rights, saying the plans had “more holes than Swiss cheese”.

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Ms Graham’s concerns echo those of thinktanks which have said public services need far more investment than what any of the major parties have pledged during the election campaign.

Sir Keir has rejected that argument, insisting there will be no return to austerity despite his party’s commitment to “iron discipline” with the country’s finances.

He has previously defended his U-turn on big spending commitments, like nationalising utilities, by saying the policy became too expensive after the Tories damaged the economy.

In response to other criticisms from Ms Graham, he has insisted he is “not turning off the taps” on oil and gas while arguing his package of workers’ rights will boost wages and raise living standards.

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With less than two weeks to go until polling day, Labour is projected to win a historic landslide after 14 years out of power.

Ms Graham has said she still wants to see a Labour government in Number 10 but thinks the party’s proposals for the country don’t go far enough “after years of Tory neglect”.

The Labour Party has been contacted for comment.

You can watch the full interview with Sharon Graham on Sunday Morning With Trevor Phillips from 8.30am tomorrow morning on Sky News.

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