Cryptocurrency platform JPEX, headquartered in Dubai, is reportedly shutting down a few of its operations, because the change is going through a probe from Hong Kong police and the monetary regulator over suspected fraud.
The firm introduced Sunday that it might “delist” all transactions related to its Earn Trading interface on September 18, 2023.
“At that time, users will not be able to place any new Earn order. Existing ongoing Earn orders will continue until the product’s end date to receive reward.”
JPEX: “Unfair Treatment” in Hong Kong
JPEX has pointed fingers at related establishments in Hong Kong for his or her “unfair treatment” towards the change. The platform additionally stated that destructive information surrounding the corporate has triggered third-party market makers to “maliciously” freeze funds.
“They demanded more information from the platform for negotiation, restricting our liquidity and significantly increasing our daily operating costs, leading to operational difficulties.”
Further, the change is negotiating with the market makers to resolve the liquidity scarcity to guard the pursuits of customers.
Internet Celebrity Arrested in Connection with JPEX “Rug Pull”
In a separate probe associated to the JPEX platform, Hong Kong police have arrested a well-liked web superstar Lam Zuo, for allegedly selling rug pull crypto change JPEX.
The arrest comes days after the HK regulator – Securities and Futures Commission (SFC) – issued a warning assertion that the “unlicensed” JPEX has been actively selling its services and products to residents by social media influencers, key opinion leaders and over-the-counter crypto change outlets.
Hong Kong police had arrange a hotline to report circumstances and inquires to the general public, in response to an area information report on Monday. “The police will later search his (Lam Zuo) company in Queen’s Road Central, Central,” it added.
The regulator cautioned the general public to be cautious of any alternatives that appeared “too good to be true.” Following the warning, just a few customers reported points whereas withdrawing cryptos from their on-line accounts. They complained that the platform is charging a excessive withdrawal charge.
The change promised on Sunday that it might “gradually adjust the withdrawal fees back to normal levels.” There will likely be a devoted withdrawal crew chargeable for dealing with emergency withdrawal requests, it added.
“We hope to navigate through these challenging times together with our users.”
The Hong Kong police have acquired 83 studies towards JPEX, involving a complete of HK$34 million (roughly $4.3 million), in response to Police Commissioner Raymond Siu, who stated Saturday throughout a press meet.
Officers in Hong Kong are in contact with Cyberport and have offered opinions on safeguarding cybersecurity, notably after perpetrators stole 400 gigabytes of knowledge in a cyber-attack on the corporate’s file storage server in August.