Victims of Hong Kong’s FTX win lawsuit as bankers criticize stablecoins: Asia Express

Recently, victims of the defunct cryptocurrency exchange known as JPEX in Hong Kong won a significant civil case against the exchange in court. The ruling favored two investors who filed a lawsuit against the exchange and its affiliate, Web 3.0 Technical Support. As a result, around 1.85 million Hong Kong dollars, equivalent to approximately $238,000, will be recovered on behalf of the plaintiffs.

The lawyer representing the plaintiffs, Joshua Chu, emphasized the importance of this judgment for victims of virtual currency-related cases. He noted that the ruling sets a precedent for others in similar situations who are seeking to recover their assets. Recovering funds in cases of digital currency fraud can be challenging in Hong Kong due to limited precedents and a lack of specialized legal expertise. Additionally, the six-year statute of limitations for civil cases poses an obstacle for victims looking to recover their assets.

Following the court ruling, Chu and his clients are pursuing enforcement action to reclaim frozen funds held by local authorities. Approximately $29 million related to the case was frozen earlier this year by authorities in Hong Kong.

The JPEX scandal, which unfolded in September 2023, has been compared to the FTX collapse due to mismanagement, lack of transparency, and significant investor losses. The scandal had a negative impact on the local industry, with withdrawal freezes and arrests taking place as the government was engaged in regulatory discussions regarding digital assets.

In other news, Gemini has received preliminary approval for a Major Payment Institution license in Singapore. This license allows businesses to offer cross-border transfers and digital payment token services in the city-state. If fully approved, Gemini will join other US-based firms to serve clients in Singapore.

Central bankers recently gathered to discuss stablecoins and central bank digital currencies. Reserve Bank of India Governor Shaktikanta Das expressed reservations about stablecoins during the discussion, advocating for central bank digital currencies instead. He highlighted concerns about the dominance of private money in the payment system and emphasized the importance of central bank-issued fiat currency.

Overall, these recent developments in the cryptocurrency and financial sectors demonstrate the ongoing evolution of regulations, enforcement actions, and technological advancements in response to the changing landscape of digital assets.