JPEX Halts Certain Trading Amidst Investigation
Crypto exchange JPEX has suspended some of its trading functions amidst an unfolding police investigation in Hong Kong. This development has seen market makers hold back funds, further impacting the exchange's liquidity.
In a recent statement, the exchange revealed that users would not be able to place fresh orders on a selection of its wealth management offerings. JPEX is in active discussions with third-party market makers to address the current liquidity crunch.
JPEX has given assurances that it's focused on restoring liquidity swiftly, hinting at a potential return to standard withdrawal fee structures. The exchange has also emphasized its commitment to addressing emergency withdrawal requests promptly, emphasizing its dedication to user needs during these turbulent times.
In a related development last week, Hong Kong authorities declared the initiation of investigations into JPEX, acting on a tip-off from the Securities and Futures Commission. A recent report indicated the arrest of six individuals, including four men and two women, on charges related to a "conspiracy to defraud." Additional arrests may be on the horizon.
JPEX has expressed concerns over what it perceives as discriminatory treatment from certain Hong Kong institutions. The exchange points to a surge of negative media attention and claims of "malicious" actions by its partnered third-party market makers, which have led to tightened liquidity conditions and heightened daily operational expenses.