JPEX has increased withdrawal fees and frozen certain operations following a liquidity crisis on the platform.
The crisis follows warnings from Hong Kong regulators about the exchange’s trading and regulatory dealings. JPEX announced that it has paused the operations of the Earn program on its platform, increasing withdrawal fees in the wake of the ongoing liquidity crisis. In addition, the exchange claimed that market makers “maliciously froze” the company’s funds.
Hong Kong regulators warned!
The problems came on the heels of concerns expressed by the Hong Kong Securities and Futures Commission (SFC) about JPEX. SFC had issued a warning text stating that the exchange made misleading statements regarding licensing, encouraged business partnerships that did not materialize, and offered suspiciously high returns for its interest-bearing products.
Hong Kong police are also collecting complaints about JPEX and have received at least 83 complaints from concerned users, according to the South China Morning Post. Hong Kong’s Commercial Crime Bureau also investigated the company, which claimed on its website that its headquarters was in Dubai.
JPEX is known in Hong Kong for its advertising face of famous actor Julian Cheung Chi-lam. However, according to media reports, the relationship ended after the Hong Kong SFC added JPEX to its warning list and requested that the platform be licensed in Hong Kong before continuing to use Cheung for promotional purposes. JPEX classified the actions of Hong Kong regulators as “unfair treatment” and said: “We believe that the platform will not collapse and will continue to operate stably.”
Sharp decline in stock market token!
Jpex (JPC), the native token of JPEX, lost 21.76 percent in value in the last day. The stock exchange token, which fell to $0.02, created an atmosphere of panic not only among users but also in the market as a whole. JPC, which was traded at $0.028 just a few days ago, collapsed with the chaos experienced by the stock market. In addition, although JPC experienced a 3.80 percent volume increase in the last 24 hours, almost all of this share consisted of sell-side transactions.
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