JPEX Accuses Partners of Wrongdoing and Causing Liquidity Crisis
- Crypto exchange JPEX has accused Hong Kong regulators and its partners of wrongdoing in a blog post.
- The exchange claims that third-party market makers froze its funds, which led to a liquidity crisis.
- The crisis led to the exchange raising its withdrawal fee of 999 USDT on a maximum transaction of 1000 USDT.
- The firm accused regulators of “unfair treatment,” causing market makers to “maliciously” freeze funds.
JPEX, a crypto exchange based in Dubai, has pointed fingers at its partners, claiming that it was due to their activities that the platform faced a liquidity crisis. The exchange has recently hiked withdrawal fees, announced the suspension of several operations, and slammed regulators and “third-party market makers” for causing the liquidity crisis that led to these consequences.
As per a blog post published on September 17, JPEX stated that the “unfair treatment” of the crypto exchange by certain regulators in Hong Kong, coupled with negative news regarding the trading platform, resulted in its third-party market makers “maliciously” freezing funds. The exchange also noted that the liquidity issues caused it to raise fees.
According to a previous report from BitcoinWisdom, Hong Kong recently warned investors against crypto firms posing as banking institutions. The Securities and Futures Commission (SFC) recently called out crypto company JPEX for advertising itself as a licensed firm despite not being authorized.
“They demanded more information from the platform for negotiation, restricting our liquidity and significantly increasing our daily operating costs, leading to operational difficulties,” said the trading platform.
Following the liquidity crisis, JPEX announced that all operations affiliated with its Earn product would be “delisted” by September 18, while adding that users would not be able to place new orders via its Earn product. Additionally, the existing orders for the Earn product will only continue until the product end date and not further.
More importantly, it has been reported that the spot trading activity at JPEX is currently normal, but the fee to withdraw funds has surged to 999 Tether (USDT) for a maximum of 1,000 USDT. While the crypto trading platform did not address the hike in withdrawal fees, it promised to gradually adjust the fees “back to normal levels” after finishing negotiations with the third-party market makers.
“We promise to recover liquidity from third-party market makers as soon as possible and gradually adjust the withdrawal fees back to normal levels,” JPEX further said, adding that more details will be announced after settlements with the third-party market makers have been reached.
A crypto journalist with over 3 years of experience in DeFi, NFT, metaverse, etc. Parth has worked with major media outlets in the crypto and finance world and has gained experience and expertise in crypto culture after surviving bear and bull markets over the years.
