Hong Kong Opens Investigation into Crypto Exchange JPEX

Hong Kong Opens Investigation into Crypto Exchange JPEX

Following an investigation launched by Hong Kong’s Securities and Futures Commission (SFC), JPEX, a cryptocurrency exchange, has suspended trading due to a liquidity crisis.

According to local media, one person linked to the platform was arrested. Moreover, the SFC alleged that the exchange was operating in Hong Kong without a license.

JPEX said in a blog post that their third-party market makers maliciously froze their funds due to an “unfair treatment” from the relevant institutions in Hong Kong.

Additionally, their trading partners had asked for additional information, which has limited their liquidity and increased their daily operating costs.

Furthermore, the JPEX Earn service was suspended from September 18, allowing for full withdrawal of funds and the exchange is discussing restructuring into a decentralized autonomous organization.

The exchange claims to be licensed by Australian regulators and is registered with the US Financial Crimes Enforcement Network as a financial services provider. Token2049 visitors have also claimed the crypto exchange stand was abandoned on the first day.