- Dubai-based cryptocurrency exchange JPEX is facing a liquidity crisis.
- JPEX blames regulators and “third-party market makers” for the situation.
- The exchange alleges that certain institutions in Hong Kong have engaged in unfair treatment.
- JPEX claims that negative news has caused its third-party market makers to freeze funds maliciously.
- As a result of the liquidity crisis, JPEX has delisted all operations related to its Earn product.
- Withdrawal fees have been increased, with users reporting a 999 USDT fee for withdrawals.
- JPEX plans to gradually adjust the withdrawal fees back to normal levels.
- The exchange is planning to use a decentralized autonomous organization (DAO) to gather suggestions for restructuring.
On Sept. 13, the Hong Kong Securities and Futures Commission (FSC) issued a warning against JPEX for allegedly promoting its services without a license.
The FSC identified suspicious features and discrepancies in JPEX’s practices and marketing.
JPEX has attracted complaints from users, and local police in Hong Kong have received at least 83 complaints about the exchange.