Key Takeaways:
- Probe into JPEX leads to one arrest in the ongoing investigation.
- JPEX allegedly operated without a license.
- JPEX’s native token, JPC, plunges by 21.98% in 24 hours amid unfolding events.
LUCKNOW (CoinChapter.com) — Hong Kong’s cryptocurrency exchange, JPEX, has suspended all trading activities after a probe by the Hong Kong Securities and Futures Commission (SFC) uncovered alleged illegal operations.
According to a local media report, the investigation has led to the arrest of an individual associated with the exchange. Notably, Hong Kong police had received 83 complaints regarding its operations. The exchange has been operating in Hong Kong without the necessary licensing, as per the SFC’s findings.
JPEX responded:
“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.”
Amid liquidity challenges, JPEX has taken the drastic step of delisting all transactions on its Earn Trading interface, effective Monday. They have also announced plans to adjust withdrawal fees and are contemplating transitioning to a Decentralized Autonomous Organization (DAO) structure.
JPEX’s Taiwan Office Vacated
Local media in Taiwan have reported that JPEX’s Taipei office was recently vacated. Local authorities have reportedly questioned Taiwanese influencers hired by the exchange.
The exchange asserts that it holds licenses from securities authorities in Australia and has registration with the U.S. Financial Crimes Enforcement Network (FinCEN) as a Money Services Business (MSB). However, the recent SFC probe doubts the exchange’s compliance with local Hong Kong regulations.
During the recent Token2049 conference in Singapore, attendees who visited JPEX’s booth met with an unexpected sight, noting that the exchange’s logo looks exactly the same as FTX, a defunct crypto exchange. The visitors also noted that the exchange’s staff had abandoned the booth on the first day.
As a result of these developments, the exchange’s native token, JPC, has declined 21% in price in the last 24 hours.
