{"id":62333,"date":"2023-09-18T04:44:15","date_gmt":"2023-09-18T08:44:15","guid":{"rendered":"https:\/\/ifintechworld.com\/markets\/crypto\/crypto-exchange-jpex-suspends-earn-trading-amid-ongoing-investigations-in-hong-kong\/"},"modified":"2023-09-18T04:44:17","modified_gmt":"2023-09-18T08:44:17","slug":"crypto-exchange-jpex-suspends-earn-trading-amid-ongoing-investigations-in-hong-kong","status":"publish","type":"post","link":"https:\/\/ifintechworld.com\/?p=62333","title":{"rendered":"Crypto Exchange JPEX Suspends Earn Trading Amid Ongoing Investigations in Hong Kong"},"content":{"rendered":"
\n

Cryptocurrency platform JPEX<\/strong>, headquartered in Dubai, is reportedly shutting down some of its operations, as the exchange is facing a probe from Hong Kong police and the financial regulator over suspected fraud.<\/p>\n

The company announced Sunday that it would \u201cdelist\u201d all transactions associated with its Earn Trading interface on September 18, 2023.<\/p>\n

\n

\u201cAt that time, users will not be able to place any new Earn order. Existing ongoing Earn orders will continue until the product\u2019s end date to receive reward.\u201d<\/p>\n<\/blockquote>\n

JPEX: \u201cUnfair Treatment\u201d in Hong Kong<\/h2>\n

JPEX has pointed fingers at relevant institutions in Hong Kong for their \u201cunfair treatment\u201d toward the exchange. The platform also said that negative news surrounding the company has caused third-party market makers to \u201cmaliciously\u201d freeze funds.<\/p>\n

\n

\u201cThey demanded more information from the platform for negotiation, restricting our liquidity and significantly increasing our daily operating costs, leading to operational difficulties.\u201d<\/p>\n<\/blockquote>\n

Further, the exchange is negotiating with the market makers to resolve the liquidity shortage to protect the interests of users.<\/p>\n

Internet Celebrity Arrested in Connection with JPEX \u201cRug Pull\u201d<\/h2>\n

In a separate probe related to the JPEX platform, Hong Kong police have arrested a popular internet celebrity Lam Zuo, for allegedly promoting rug pull crypto exchange JPEX.<\/p>\n

<\/oembed><\/figure>\n

The arrest comes days after the HK regulator \u2013 Securities and Futures Commission (SFC) \u2013 issued a warning statement that the \u201cunlicensed\u201d JPEX has been actively promoting its products and services to citizens through social media influencers, key opinion leaders and over-the-counter crypto exchange shops.<\/p>\n

Hong Kong police had set up a hotline to report cases and inquires to the public, according to a local news report on Monday. \u201cThe police will later search his (Lam Zuo) company in Queen’s Road Central, Central,\u201d it added.<\/p>\n

The regulator cautioned the public to be wary of any opportunities that seemed \u201ctoo good to be true.\u201d Following the warning, a few users reported issues while withdrawing cryptos from their online accounts. They complained that the platform is charging a high withdrawal fee<\/a>.<\/p>\n

The exchange promised on Sunday that it would \u201cgradually adjust the withdrawal fees back to normal levels.\u201d There will be a dedicated withdrawal team responsible for handling emergency withdrawal requests, it added.<\/p>\n

\u201cWe hope to navigate through these challenging times together with our users.\u201d<\/p>\n

The Hong Kong police have received 83 reports against JPEX, involving a total of HK$34 million (roughly $4.3 million), according to Police Commissioner Raymond Siu, who said Saturday during a press meet.<\/p>\n

Officers in Hong Kong are in touch with Cyberport and have provided opinions on safeguarding cybersecurity, particularly after perpetrators stole 400 gigabytes of data in a cyber-attack on the company’s file storage server in August.<\/p>\n<\/p><\/div>\n