Specifically, on September 17th, the cryptocurrency exchange JPEX, based in Japan, announced the temporary suspension of its Earn Trading program on its platform starting on September 18th.
It’s worth noting that JPEX is only closing its Earn Trading service, and its spot trading services will continue. However, the withdrawal fees on the platform have surged significantly, reaching up to 999 USDT, with a maximum withdrawal limit of 1,000 USDT.
In addition, the company has frozen its gaming platform and announced plans to collect proposals for user-initiated DAO restructuring.
Furthermore, third-party market makers affiliated with the exchange have had to freeze their funds due to complaints from the Hong Kong authorities. These events have led to increased operational costs and reduced liquidity, causing challenges in JPEX’s operations.
Currently, JPEX is working with its partners to restore liquidity, but it will not disclose detailed information until the negotiations are concluded.
“We promise to restore liquidity from third-party market makers as soon as possible and gradually adjust the withdrawal fees back to normal levels.”
This crisis at JPEX comes shortly after the Hong Kong Securities and Futures Commission (SFC) issued a warning and launched an investigation, alleging that the platform had made false claims about obtaining licenses from foreign regulatory agencies and suspiciously advertised high-profit products.
Hong Kong police are currently handling at least 83 user complaints related to JPEX, and the Hong Kong Police Commercial Crime Bureau is investigating the company.