Hong Kong’s FTX victims victorious in lawsuit, bankers criticize stablecoins: Asia Express

Victims of Hong Kong’s version of FTX, JPEX, have won a significant lawsuit. The court ruled in favor of two investors who filed a civil suit against the defunct cryptocurrency exchange JPEX and its affiliate, Web 3.0 Technical Support. As a result of the ruling, approximately $238,000 will be recovered for the plaintiffs.

According to Joshua Chu, co-chair of the Hong Kong Web3 Association, this ruling sets a precedent for victims of virtual currency-related cases. It highlights that victims have legal recourse and can take steps to recover their funds, rather than solely relying on criminal investigations. Chu also mentioned the challenges faced by victims of digital currency fraud in Hong Kong, including limited precedents and legal expertise, as well as the statute of limitations that can benefit bad actors.

Following the JPEX scandal in September 2023, where the Securities and Futures Commission warned that the exchange was unlicensed, the government froze around $29 million related to the case. This scandal, likened to Hong Kong’s version of the FTX collapse, showcased mismanagement, investor losses, and withdrawal freezes.

In other news, Gemini, the cryptocurrency exchange, has received preliminary approval for Singapore’s Major Payment Institution license. This license would enable Gemini to provide cross-border transfers and digital payment token services in Singapore. It signifies the continuing expansion of cryptocurrency exchanges in the APAC region.

On the regulatory front, central bank officials shared views on stablecoins at the G30 Annual International Banking Seminar. Reserve Bank of India Governor Shaktikanta Das expressed strong reservations about stablecoins while advocating for central bank digital currencies (CBDCs) in India. He highlighted concerns about private money dominating the payment system and stressed the benefits of CBDCs over cryptocurrencies.

Overall, these developments in the cryptocurrency and financial space reflect the ongoing evolution and regulatory considerations within the industry.