Dubai-based cryptocurrency exchange JPEX is facing a liquidity crisis, which has led to increased withdrawal fees and the suspension of certain operations. The exchange blames “unfair treatment” from certain institutions in Hong Kong and negative news for causing its third-party market makers to freeze funds. JPEX stated that these actions have restricted liquidity and increased operating costs, resulting in operational difficulties.
As a result of the liquidity crisis, JPEX announced that all operations related to its Earn product would be delisted by September 18. Users will no longer be able to place new Earn orders, and existing orders will only continue until the product end date.
While regular spot trading activity on JPEX appears to be functioning normally, users have alleged that the platform is currently charging a 999 Tether (USDT) fee for withdrawals, with a maximum amount of 1,000 USDT. JPEX did not address the high withdrawal fee directly but promised to gradually adjust the fees back to normal levels after concluding negotiations with the third-party market makers.
In addition to the suspension of its Earn product, JPEX announced that it would be using a decentralized autonomous organization (DAO) to collect suggestions from users regarding its restructuring.
The Hong Kong Securities and Futures Commission (FSC) issued a warning against JPEX on September 13 for allegedly promoting its services to Hong Kong residents without a license. The FSC observed suspicious features in JPEX’s practices, including offering high returns and discrepancies in its marketing. An attendee at the Token 2049 conference in Singapore reported that the JPEX booth had been abandoned the day after the FSC’s warning.
Local police in Hong Kong have received at least 83 complaints about JPEX, according to a report from the South China Morning Post.
It is important to note that Cointelegraph reached out to JPEX for comment but did not receive a response at the time of publication.
Source: [South China Morning Post](https://www.scmp.com/news/hong-kong/law-and-crime/article/3234873/jpex-crypto-platform-suspend-trades-monday-amid-investigation-hong-kong)
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I've been involved in the cryptocurrency world since 2016 and trading since 2019. I started Moon and Lambo in 2021. I'm passionate about crypto and love to share my knowledge. I hate bankers and I hope that cryptocurrency will change the financial world for the better. View full profile...
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