Crypto exchange JPEX has shut down some trading operations in the midst of an ongoing police probe, adding that market makers have frozen funds.
JPEX users will be unable to place new orders on some of its wealth management products, according to a statement. Market makers have frozen funds following investigations by Hong Kong authorities and the firm is now negotiating with third party market makers to resolve a liquidity shortage.
«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 said. «During this period, our dedicated withdrawal team responsible for handling emergency withdrawal requests will continue to prioritize users’ needs. We hope to navigate through these challenging times together with our users.»
Police Probe
Last week, the Hong Kong police announced that it had launched investigations into claims against JPEX following a referral from the Securities and Futures Commission. Four men and two women were arrested yesterday on suspicions of «conspiracy to defraud», according to a separate statement, with the possibility of more to follow.
«Recently, due to the unfair treatment by relevant institutions in Hong Kong towards JPEX, a cryptocurrency trading platform, and a series of negative news, our partnered third party market makers have maliciously frozen funds,» the exchange added, highlighting increased liquidity restrictions and daily operating costs.
