JPEX-Crypto, a Hong Kong-based cryptocurrency exchange, has suspended trading operations amid an ongoing investigation into alleged fraud.
The suspension was announced by JPEX on Sunday following reports that the Commercial Crime Bureau of the Hong Kong Police Force is actively investigating the exchange after being alerted to suspected unlawful activity by the China Securities and Futures Commission.
According to authorities, over 80 complaints have been filed against JPEX relating to approximately HK$34 million (US$4.3 million) worth of virtual assets. The complaints cite issues such as inflated withdrawal fees and questionable staffing claims.
JPEX has come under intense scrutiny in recent weeks after the Securities and Futures Commission issued a warning to potential investors about dealing with the exchange. The Commission stated that JPEX has falsely advertised itself as a licensed platform despite not having proper registration.
In its announcement, JPEX claimed the suspension of trading was due to negative press coverage that prompted market makers to freeze capital and disrupt cash flows. The exchange stated that existing trades will remain effective until maturity but no new trades will be processed for the time being.
JPEX is also promising to restore liquidity and normalize withdrawal fees as soon as possible. The company maintains that it has been treated unfairly throughout the ongoing fraud investigation.
Authorities continue to advise extreme caution when investing or trading on unregulated cryptocurrency platforms, especially those promoting questionable high-yield investment products. The investigation into JPEX remains ongoing.
