- September 19, 2023
- Posted by: [email protected]
- Category:
Dubai-based cryptocurrency platform JPEX finds itself entangled in an ongoing investigation led by Hong Kong police and the financial regulator, suspected of fraudulent activities. As a result, the exchange has decided to suspend certain operations.
JPEX said on Sunday that it plans to “delist” all transactions related to its Earn Trading interface on September 18, 2023. Users will be unable to initiate new Earn orders after that date, but existing ongoing Earn orders will remain until their respective end dates, ensuring users receive their rewards.
JPEX, however, isn’t going down without a fight and has pointed fingers at Hong Kong institutions, accusing them of treating the exchange unfairly. The platform claims that negative news surrounding its operations has led third-party market makers to “maliciously” freeze funds, exacerbating its liquidity crisis and causing significant increases in daily operating costs. In an effort to resolve the liquidity shortage and safeguard user interests, JPEX is currently engaged in negotiations with these market makers.
In a separate but related probe, Hong Kong police have taken action by arresting internet celebrity Lam Zuo, who allegedly promoted the controversial crypto exchange JPEX. This arrest follows a warning issued by the Hong Kong regulator, the Securities and Futures Commission (SFC), which labeled JPEX as “unlicensed” and accused it of actively marketing its products and services through social media influencers, key opinion leaders, and over-the-counter crypto exchange shops.
To facilitate the investigation, Hong Kong police have established a hotline for reporting cases and inquiries from the public. They have also announced plans to search Lam Zuo’s company in Queen’s Road, Central.
The SFC’s warning urged the public to exercise caution when encountering opportunities that appear “too good to be true.” Some users have reported issues with withdrawing cryptocurrencies from their online accounts, citing high withdrawal fees. In response, JPEX pledged on Sunday to gradually revert withdrawal fees back to normal levels and establish a dedicated withdrawal team to handle emergency withdrawal requests.
Hong Kong police have been inundated with reports related to JPEX, totaling HK$34 million (approximately $4.3 million) across 83 cases, as disclosed by Police Commissioner Raymond Siu during a press briefing on Saturday. Additionally, the police are actively collaborating with Cyberport and offering guidance on cybersecurity measures, especially after a cyberattack in August resulted in the theft of 400 gigabytes of data from the company’s file storage server.
Amid these challenges and investigations, JPEX expressed its commitment to navigating through these difficult times alongside its user base.
