Lawyer: Civil claims against JPEX are relatively difficult, and users with uncollateralized assets may become unsecured creditors

ChainCatcher news, according to reports from the Hong Kong Economic Journal, lawyer Chan Ting-kin, who specializes in financial market regulation and virtual assets in Hong Kong, stated that at this stage, Hong Kong users of JPEX may face certain difficulties if they consider civil claims. The current challenge is that it is unclear which legal entity holds the customer assets of JPEX, and the registration location of that legal entity is also unknown. Once JPEX collapses, referring to the liquidation process of the unlicensed virtual asset trading platform Gatecoin registered in Hong Kong in the past, the process must orderly distribute the platform's assets to creditors, and the type of creditors for users largely depends on the terms between the platform and the users.

Since JPEX is not licensed in Hong Kong, if the terms do not clearly establish a trust relationship between the exchange and the users, the deposits held by the exchange may likely be regarded as the exchange's assets during the liquidation process. This means that users would be considered unsecured creditors, and in the priority order of asset distribution during liquidation, they would rank behind secured creditors, liquidation costs, priority payments, and floating charge creditors, specifically in fifth place.