JPEX, a cryptocurrency exchange, has decided to suspend the Earn program on its platform for the time being. This resulted from the company’s admission of an existing liquidity issue, for which it accused third-party market makers of blocking the company’s funds in a malicious manner.
With the spot traders carrying on with their activities, some users allege that the platform has attached a 999 USDT fee for making withdrawals. As per rumors doing the rounds, the maximum amount a user is allowed to withdraw is 1,000 USDT. On its part, JPEX has issued a statement mentioning the fact that they are in the process of redeeming the liquidity from third-party market makers and will slowly bring the fees linked to withdrawals back to their original amount. JPEX has blocked its game platform, too, and divulged its intention to welcome proposals related to DAO restructuring as and when the users put them forward.
This regrettable circumstance has developed as a result of JPEX receiving criticism from the Securities and Futures Commission (SFC) of Hong Kong. This is in reference to the corporation issuing false statements regarding the receipt of licenses from foreign regulators and forming associations with companies that never actually occurred. Another problem is that JPEX promised unrealistic returns on its interest-based products.
As per the information received from the South China Morning Post, the police in Hong Kong are gathering grievances with regard to JPEX, as well as 83 notices from connected users. The Commercial Crime Bureau of Hong Kong is also actively involved in carrying out its own investigation of JPEX, which has its headquarters in Dubai.
JPEX is well-known for its association with the Hong Kong actor Julian Cheung Chi-lam, who is highly regarded and popular. After the SFC of Hong Kong placed JPEX on its alert list, the association began to wane. The team supporting Cheung stipulated that JPEX must obtain a license in Hong Kong in order to use his photographs; otherwise, JPEX will not be permitted to use his pictures in any capacity.
In response to this, JPEX believes that the regulators are victimizing him, but the company is confident that they will maintain their position and continue operating their official operations.