Dubai-based cryptocurrency alternate JPEX has slammed regulators and “third-party market makers” for a liquidity disaster that has seen the platform hike withdrawal charges and droop sure operations.
In a Sept. 17 weblog put up, JPEX said “unfair therapy” from sure establishments in Hong Kong, together with destructive information — brought on its third-party market makers to “maliciously” freeze funds.
“They demanded extra data from the platform for negotiation, proscribing our liquidity and considerably growing our each day working prices, resulting in operational difficulties.”
Blaming the liquidity disaster, JPEX introduced that each one operations affiliated with its Earn product can be “delisted” by Sept. 18. Customers will not be capable to place any new Earn orders and current Earn orders will solely proceed till the product finish date, it mentioned.
Common spot buying and selling exercise seems to stay useful on the time of publication, nonetheless, JPEX customers are alleging that the platform is currently charging a 999 Tether (USDT) charge for withdrawals, on a most quantity of 1,000 USDT.
JPEX didn’t particularly handle the excessive withdrawal charge however pledged to steadily alter the withdrawal charges “again to regular ranges” after it finishes negotiations with the third-party market makers.
“We promise to recuperate liquidity from third-party market makers as quickly as attainable and steadily alter the withdrawal charges again to regular ranges,” JPEX mentioned in a press release, noting the small print might be introduced after negotiations conclude.
Along with shuttering its Earn product, JPEX introduced that it could be utilizing a decentralized autonomous group (DAO) to gather options relating to its restructuring from customers.
Cointelegraph contacted JPEX however didn’t obtain a response by the point of publication.
Associated: Hong Kong central bank warns against crypto firms using banking terms
On Sept. 13, the Hong Kong Securities and Futures Fee (FSC) issued a warning against JPEX for allegedly promoting its providers to Hong Kong residents regardless of not having utilized for a license within the nation.
In a statement, the SFC wrote that it had noticed a “variety of suspicious options” regarding the practices of JPEX, together with providing very excessive returns and different discrepancies in the way it had marketed itself to the Hong Kong public regardless of being unlicensed.
An attendee of the Token 2049 convention in Singapore claimed that the JPEX sales space on the occasion had been deserted the day after the FSC issued its warning.
The Platinum sponsor, JPEX, deserted their sales space at #Token2049 on the second day.
On a facet observe, their brand seems to be fairly much like FTX. Is {that a} signal? pic.twitter.com/KZw9o5vNgF
— J O Y (@joyxspacelatte) September 14, 2023
Native police in Hong Kong have now acquired at the very least 83 complaints regarding the alternate, according to a Sept. 18 report from the South China Morning Put up.
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