JPEX temporarily suspended | Dubai-based cryptocurrency exchange JPEX is currently in the midst of a major overhaul due to mounting scrutiny from Hong Kong authorities and an unexpected turn of events involving a local internet celebrity.
Cryptocurrency Exchange JPEX Delisting Earn Trading Interface Amidst Regulatory Probe
In a bold move, JPEX recently announced its decision to delist all transactions associated with its Earn Trading interface, effective September 18, 2023. This unexpected move comes as the exchange finds itself under investigation by Hong Kong police and financial regulators over suspicions of fraud.
The announcement stated that users would not be able to initiate new Earn orders after the specified date, though existing ongoing orders would continue until their scheduled end date to receive rewards.
Allegations of Unfair Treatment and Liquidity Woes in Hong Kong
JPEX has not shied away from voicing its grievances regarding what it perceives as “unfair treatment” from Hong Kong institutions. The platform has alleged that negative news surrounding the company has prompted third-party market makers to maliciously freeze funds.
These market makers have demanded additional information from JPEX for negotiation, which, in turn, has restricted the platform’s liquidity and led to significant increases in daily operational costs, resulting in operational difficulties. Despite these challenges, JPEX is actively engaged in negotiations with market makers to resolve the liquidity shortage and safeguard the interests of its users.
Internet Celebrity Lam Zuo Arrested in Connection with JPEX
In a shocking turn of events linked to the JPEX platform, Hong Kong police have arrested popular internet celebrity Lam Zuo on charges of promoting the questionable cryptocurrency exchange.
This arrest closely follows a warning statement issued by the Securities and Futures Commission (SFC), labeling JPEX as “unlicensed” and accusing it of actively promoting its products and services through social media influencers, key opinion leaders, and over-the-counter crypto exchange shops. A hotline has been established by Hong Kong police to allow the public to report cases and inquiries. The police plan to search Lam Zuo’s company in Queen’s Road Central, Central, as part of their investigation.
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Warning from the Securities and Futures Commission (SFC) Raises Concerns
The SFC’s cautionary statement has sent shockwaves through the cryptocurrency community. Users are advised to exercise caution and skepticism when encountering opportunities that appear “too good to be true.” Following the warning, some users reported difficulties withdrawing cryptocurrencies from their online accounts, citing high withdrawal fees as a primary concern.
JPEX has committed to gradually adjusting withdrawal fees back to normal levels and establishing a dedicated withdrawal team responsible for handling emergency withdrawal requests. The exchange aims to work closely with its user base to navigate these challenging times.
JPEX’s Efforts to Address Issues and Safeguard Cybersecurity
Beyond addressing regulatory concerns and user issues, JPEX faces the imperative task of fortifying its cybersecurity measures. Hong Kong police have received 83 reports against JPEX, involving a total of HK$34 million (approximately $4.3 million), as disclosed by Police Commissioner Raymond Siu during a press briefing.
In response to security threats, officers in Hong Kong have been collaborating with Cyberport and offering insights on enhancing cybersecurity, particularly after a significant cyber-attack in August that saw perpetrators make off with 400 gigabytes of data from the company’s file storage server.