Dubai-based cryptocurrency platform JPEX is said to be curtailing certain operations amidst scrutiny from Hong Kong law enforcement and financial regulatory bodies, who suspect fraudulent activities.
On Sunday, the firm communicated its decision to “delist” all transactions linked to its Earn Trading feature effective September 18, 2023.
The company stated, “From this date, users won’t have the capability to initiate new Earn orders. However, current active Earn orders will persist until the designated end date, allowing users to obtain their rewards.”
JPEX: “Unfair Treatment” in Hong Kong
JPEX has laid blame on pertinent Hong Kong entities for what it perceives as “unjust actions” towards the exchange. Additionally, the platform commented that the adverse media coverage concerning its operations led third-party market makers to “deliberately” halt funds.
These market makers, as the platform stated, “requested additional information from us as a part of their negotiations, hampering our liquidity and notably elevating our everyday operational expenses, resulting in operational challenges.”
Moreover, the exchange is actively engaged in talks with these market makers in an effort to address the liquidity issues and safeguard the interests of its user base.
Internet Celebrity Arrested in Connection with JPEX “Rug Pull”
In a distinct investigation concerning the JPEX platform, Hong Kong authorities detained well-known internet personality, Lam Zuo, on suspicions of endorsing the controversial crypto exchange, JPEX, known for rug pull tactics.
This arrest follows shortly after the Hong Kong regulatory body, the Securities and Futures Commission (SFC), released a cautionary statement. The SFC highlighted that JPEX, an “unlicensed” entity, has been aggressively marketing its offerings to the public via social media influencers, key opinion leaders, and over-the-counter cryptocurrency trading hubs.
In response to the situation, Hong Kong police established a hotline for the public to report any related incidents or raise inquiries. A local news report on Monday mentioned, “Subsequent actions will involve the police inspecting Lam Zuo’s business located on Queen’s Road Central, Central.”
The SFC urged the public to remain vigilant, especially when faced with offers that appear “overly lucrative.” Following this advisory, several users voiced concerns over difficulties experienced when attempting to withdraw cryptocurrencies from their digital wallets, noting that the platform imposed exorbitant withdrawal fees.
On Sunday, the exchange committed to “systematically recalibrating the withdrawal fees to their regular rates.” Additionally, it declared the establishment of a specialized team dedicated to addressing urgent withdrawal requests, emphasizing, “We aspire to weather these testing circumstances hand in hand with our user community.”
As per Police Commissioner Raymond Siu, the Hong Kong police have amassed 83 complaints targeting JPEX, cumulatively amounting to HK$34 million (equivalent to approximately $4.3 million). He relayed this information to the public during a press conference on Saturday.
Furthermore, Hong Kong law enforcement has liaised with Cyberport, offering insights on bolstering cybersecurity. This initiative gained significance especially after malefactors pilfered 400 gigabytes of data from the firm’s file storage server due to a cyber onslaught in August.
