As per reports, the JPEX exchange is ready to halt all its trading features this week. Regulators and the Securities and Futures Commission (SFC) from Hong Kong warned the exchange several times over unregulated operations and false statements. Moreover, regulators are now inquiring the exchange for potential fraud charges.
The Dubai-based cryptocurrency exchange has called out regulators and third-party market makers for all its liquidity problems. As a result, JPEX increased its withdrawal fees and also suspended some operations.
“Recently, due to the unfair treatment by relevant institutions in Hong Kong towards JPEX, a cryptocurrency trading platform, and a series of negative news, our partnered third-party market makers have maliciously frozen funds. They demanded more information from the platform for negotiation, restricting our liquidity and significantly increasing our daily operating costs, leading to operational difficulties.”
JPEX Blames Third-Party Market Makers After Suspending Trading
The exchange has delisted all operations linked to its Earn Program on September 18. Therefore, users cannot place any new Earn order on the platform. Whereas the existing Earn orders will function normally till the product end date. JPEX has further announced the usage of DAO to gather suggestions from users about its restructuring process.
The exchange stated,
“JPEX has always believed that a decentralized autonomous organization (DAO), with decisions jointly made by every member of the community, can unleash enormous power.”
On the other hand, users have complained that they are facing problems while initiating withdrawals of their funds. Some users have added a high fee of 999 USDT for withdrawals on a max amount of 1,000 USDT. JPEX did not actually reply to the claims of high withdrawal fees but added that the platform is working to adjust the fees back to normal levels.
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Backlash, Complaints, and Criticism
JPEX users have lost their cool over the recent events. Many of them have thrashed the exchange on social media platforms, while others have lodged complaints with the local authorities. Around 83 official complaints were logged with Hong Kong police about assets worth $4.3 million.
The SFC has repeatedly highlighted the problems with the exchange. It included false claims of overseas licensing, claiming impossible high returns, and the use of influencers to spread misinformation. Therefore, the platform is under strict scrutiny from not only the authorities but its user base as well. It is yet to be seen how JPEX maps out its next move, and if it is able to regain the trust and support of its users.