- One individual has been arrested as a consequence of the JPEX investigation.
- According to reports, the JPEX exchange has been functioning illegally throughout the nation.
- As the events develop, the value of JPEX’s native token, JPC, has decreased during the last 24 hours by 21.98%.
As a result of a Hong Kong Securities and Futures Commission (SFC) inquiry, the cryptocurrency exchange JPEX in Hong Kong has stopped trading. According to local media, this investigation led to the arrest of a member of the exchange.
According to the SFC, Hong Kong-based JPEX has been operating without the required license, which led to many user complaints to law enforcement agencies. JPEX occurs as Hong Kong cautions cryptocurrency companies against calling themselves “banks.”
JPEX claims that Hong Kong authorities have treated the company unfairly.
JPEX stated its displeasure with the treatment it received from pertinent Hong Kong institutions in a blog post and blamed its third-party market makers’ freezing of money on these perceived injustices. These market makers restricted liquidity and sharply increased daily operating expenses by requesting extra information from the exchange for negotiating reasons, creating operational difficulties.
Due to these liquidity concerns, JPEX decided to halt all transactions on its Earn Trading interface starting on Monday. The exchange promised to handle active orders and modify withdrawal costs at the same time. JPEX also disclosed that it is thinking about reforming to become a Decentralized Autonomous Organization (DAO).
Taiwan offices of JPEX are now vacant.
According to Taiwanese media sources, JPEX’s Taipei office was recently closed, and local officials are said to have questioned Taiwanese influencers about how the exchange had worked.
According to JPEX’s official website, the exchange is registered with the US Financial Crimes Enforcement Network (FinCEN) as a Money Services Business (MSB) and has licenses from Australian securities regulators.
On the first day of the recent Token2049 conference in Singapore, attendees noticed that JPEX’s exhibit looked empty.