Dubai-based cryptocurrency platform JPEX has recently found itself in hot water as it faces an investigation by Hong Kong police and the financial regulator over alleged fraud. In response to this ongoing probe, JPEX has made the decision to “delist” all transactions associated with its Earn Trading interface starting from September 18, 2023. Users will no longer be able to place new Earn orders, although existing ongoing orders will be honored until the product’s end date. This move reflects the pressure and scrutiny that JPEX is currently facing, forcing the exchange to take drastic measures to safeguard its users’ interests.
JPEX has not shied away from pointing fingers at relevant institutions in Hong Kong, accusing them of subjecting the exchange to unfair treatment. Moreover, the platform claims that negative news surrounding its operations has prompted third-party market makers to maliciously freeze funds. These market makers have allegedly demanded more information from JPEX for negotiation purposes, resulting in restricted liquidity and significantly increased operating costs. As a result of these operational difficulties, JPEX is now engaged in negotiations with the market makers to resolve the liquidity shortage and protect the interests of its users.
In a separate probe related to the JPEX platform, Hong Kong police have recently arrested a popular internet celebrity named Lam Zuo. Lam Zuo has been accused of promoting rug pull crypto exchange JPEX, which has raised concern among authorities and the general public. The arrest comes shortly after the Hong Kong regulator, the Securities and Futures Commission (SFC), issued a warning statement highlighting JPEX’s unlicensed status and its active promotion of products and services through social media influencers, key opinion leaders, and over-the-counter crypto exchange shops. In order to bolster these efforts, the Hong Kong police have established a hotline for the public to report cases and inquiries related to JPEX.
Following the warning issued by the SFC, some users have reported difficulties with withdrawing their cryptocurrencies from their JPEX online accounts. These users have expressed frustration over high withdrawal fees imposed by the platform. Responding to these complaints, JPEX has vowed to gradually adjust the withdrawal fees back to normal levels and has implemented a dedicated withdrawal team tasked with handling emergency withdrawal requests. The platform emphasizes its commitment to weathering these challenging times alongside its users, showcasing its willingness to address concerns and ensure a smoother user experience moving forward.
The Multi-Million Dollar Investigation
Police Commissioner Raymond Siu revealed during a press conference that the Hong Kong police have received a total of 83 reports against JPEX, amounting to HK$34 million (approximately $4.3 million). This staggering figure underscores the severity of the allegations surrounding the exchange and highlights the potential financial impact on the affected individuals. Additionally, officers in Hong Kong have been in contact with Cyberport and have offered their expertise in safeguarding cybersecurity, particularly in light of a cyber-attack that occurred in August, where perpetrators managed to steal 400 gigabytes of data from JPEX’s file storage server.
The cryptocurrency exchange JPEX finds itself at a critical juncture, facing a probe from Hong Kong authorities and struggling to maintain its operations amid a wave of negative news and user complaints. The delisting of transactions associated with its Earn Trading interface, the arrest of a prominent internet celebrity, and the ongoing investigation into alleged fraud paint a grim picture for JPEX’s future. However, the platform remains committed to resolving its liquidity issues, adjusting withdrawal fees, and navigating these difficult times alongside its users. Only time will tell whether JPEX can weather this storm or succumb to the mounting pressure and scrutiny it currently faces.
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