The fighting bonus in "The Final Fight" was revealed to be improper! The exchange JPEX is suspected of misappropriation. Who awarded the US$390,000?

Overseas exchange JPEX has recently launched a vigorous marketing campaign in Taiwan. Not only has it set up an Asian Blockchain Industry Building in Taipei, inviting industry players to move in, but it has also found endorsements from celebrities such as Chen Lingjiu, a well-known artist. Recently, the "Fighting Final Battle" was held at the Taipei Arena. Hong Kong e-sports rich second generation Chung Pei-sheng, e-sports internet celebrity Toyz and other celebrities participated in the competition.
Unexpectedly, after the game, JPEX claimed that the bonuses were distributed through smart contracts, but it was revealed that they originated from JPEX's user deposit wallets, triggering the most sensitive suspicion of asset misappropriation after the FTX incident.
JPEX Arena holds "The Final Fight". What is JPEX?
Overseas exchange JPEX is the main sponsor of "2023 The Cage Final Battle". JPEX's LOGO can be seen exposed in events related to the event, which is hosted by Taiwanese registration company "Carry Live". In a press release released to the public, JPEX described itself as the organizer of the event.
According to the JPEX official website, the exchange's operational headquarters is located in Dubai, subject to the Dubai Virtual Assets Regulatory Authority (VARA), and has a Canadian MSB Fintrac license, an MSB issued by FinCEN in the United States, and an operating license from the Australian Securities and Investments Commission ASIC . (Chain News Note: The above licenses have limited jurisdiction and law enforcement capabilities for overseas businesses, and most of them have nothing to do with cryptocurrency derivatives)
JPEX's products include spot trading, derivatives, financial management and other products. It has not cooperated with banks in Taiwan for trust and legal currency deposit and withdrawal services, and it is currently not on the list of the Taiwan Financial Supervisory Commission's anti-laundering statement. (Financial Supervisory Committee’s Anti-Laundering Statement List)
Is JPEX suspected of misappropriating customer assets to issue bonuses?
Exchange PoR (Proof of Reserve) has become the basic work of exchanges after the FTX incident. Countries with cryptocurrency regulatory frameworks will also require exchanges to segregate assets (user assets and exchange assets must not be mixed), such as It is Japan's FTX Japan. It is because of asset isolation that most Japanese users have survived.
The exchange JPEX originally had good intentions and wanted to use smart contracts to prove that the bonus was indeed issued, but netizens found out that the "distribution address" and "user asset wallet" were the same. (Netizen research)
 JPEX indicates that bonuses will be distributed through smart contracts. Netizens analyze JPEX’s mixed use of funds.
A netizen wrote that the 390,000 USDT for the boxing match was transferred from the JPEX user's deposit wallet to the JPEX user's withdrawal wallet, and then entered the smart contract and was transferred to the wallet of the boxing match winner Zhong Peisheng. (On-chain analysis chart description)
If the inference is true, this means that JPEX will fall into two problems, one is misappropriation of user assets, and the other is the mixing of exchange assets and user assets, both of which are not conducive to JPEX's compliance.
JPEX sponsored media came forward to explain
As of press time, JPEX is still giving a positive statement, but JPEX-sponsored media stated in related news articles:
"The JPEX cryptocurrency platform only announced that it is the main sponsor of "Fighting". Is it the same commercial entity behind organizing the fighting and paying the players' boxing fees, or is it another company or funder who deposits funds into JPEX and then transfers them through the JPEX platform? The money was transferred to Zhong Peisheng’s wallet, and the actual situation still needs further clarification.” He also said that he would contact JPEX Public Relations and wait for a response.
The media stated:
JPEX cryptocurrency platform only announced that it is the main sponsor of "Fist"
It is not necessarily JPEX that organizes events and pays boxing fees to players.
It may be that the sponsor transferred the boxing rewards to JPEX and then transferred them to Zhong Peisheng’s wallet.
However, the point that "JPEX cryptocurrency platform only announced that it is the main sponsor of "Fist" is unfortunately not true.
 Picture from JPEX sponsored media
However, the inference that "it may be that the sponsor transferred the boxing rewards to JPEX and then to Peisheng Chung's wallet" may also be correct. If the bonus is not provided by JPEX, but transferred in by another funder who is also a JPEX user, it is indeed possible that the fund path seen by netizens will occur.
JPEX Bitcoin financial product annualized rate is as high as 19%
The overseas exchange JPEX and the bankrupt exchange AAX are both popular trading platforms in Hong Kong. However, the annualized interest rate of financial products is extremely high, which is extremely rare in the overall cryptocurrency industry. The annualized interest rate of Bitcoin (BTC) financial products is as high as 19. %.
In comparison, Binance’s Bitcoin financial product has an annualized return of 0.18%, and OKX’s Bitcoin financial product has an annualized return of 5%.
Since the asset volume of exchanges such as JPEX and Binance is very different, users should be more wary of such financial products. (The asset certificate given by JPEX has been updated to November 2022)
 JPEX Bitcoin financial products annualized rate is as high as 19% JPEX Bitcoin Financial Management Page If something happens to JPEX, the Taiwan Financial Supervisory Commission has no authority or responsibility.
During the FTX incident in November last year, the Financial Supervisory Commission publicly expressed its approach to handling the risks of overseas exchanges: investors should assess the risks themselves
The Financial Supervisory Commission stated: "FTX Exchange is located overseas and is not an institution approved by the Financial Supervisory Commission. Related products are also provided overseas. Investors should evaluate the risks themselves." At the same time, the Financial Supervisory Commission once again reminded investors in a press release that virtual Asset trading information is opaque and prices fluctuate greatly, resulting in high investment risks. You must be vigilant and carefully evaluate investment risks.
In addition, although the SEC in the United States has initiated lawsuits against many celebrities who endorse FTX, and the United Kingdom has also begun to regulate the promotion of cryptocurrency, there are no relevant penalties in Taiwan. Sponsored media, regardless of whether they have risk warnings or not, will hardly be liable for investor losses.
(For more concerns about the JPEX exchange, please see the Blockchain Report: The community went viral "Fist" revealed that JPEX misappropriated customer assets)
This article says the fighting prize money in "The Last Fight" was exposed improperly! The exchange JPEX is suspected of misappropriation. Who awarded the US$390,000? First appeared in Chain News ABMedia.