Dubai-based cryptocurrency platform, JPEX, is reportedly closing down some of its operations as it faces investigation from Hong Kong police and financial regulators over suspected fraud.

The company announced on Sunday that it will be “delisting” all transactions associated with its Earn Trading interface on September 18, 2023.

“At that time, users will not be able to place any new Earn order. Existing ongoing Earn orders will continue until the product’s end date to receive reward.”

JPEX Claims “Unfair Treatment” in Hong Kong

JPEX has accused relevant institutions in Hong Kong of treating the exchange unfairly. The platform also claimed that negative news about the company led to third-party market makers freezing funds.

“They demanded more information from the platform for negotiation, restricting our liquidity and significantly increasing our daily operating costs, leading to operational difficulties.”

The exchange is currently in negotiations with these market makers to address the liquidity shortage and protect user interests.

Internet Celebrity Arrested for Promoting JPEX

In a separate investigation related to JPEX, Hong Kong police have arrested internet celebrity Lam Zuo for allegedly promoting the rug pull crypto exchange.

The arrest comes after the Securities and Futures Commission (SFC) issued a warning stating that the unlicensed JPEX actively promoted its products and services through social media influencers, key opinion leaders, and over-the-counter crypto exchange shops.

Hong Kong police have set up a hotline for the public to report cases and inquiries regarding JPEX. The police will also search Lam Zuo’s company in Queen’s Road Central, Central.

Following the warning, some users reported issues with withdrawing cryptocurrencies from their online accounts, claiming that the platform charged high withdrawal fees.

JPEX has promised to gradually adjust the withdrawal fees back to normal levels and has established a dedicated withdrawal team to handle emergency requests.

The Hong Kong police have received 83 reports against JPEX, totaling HK$34 million ($4.3 million), according to Police Commissioner Raymond Siu.

In August, JPEX experienced a cyber attack in which perpetrators stole 400 gigabytes of data from the company’s file storage server. Hong Kong police are working with Cyberport to enhance cybersecurity measures.


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