JPEX-Crypto Platform to suspend trades on Monday amid investigation in Hong Kong

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A cryptocurrency exchange at the centre of a police and financial regulator’s investigation into suspected fraud in Hong Kong has announced it will suspend trades on Monday. JPEX-Crypto Platform on Sunday evening said negative news surrounding the company had led market makers to freeze its capital and stifle its cash flow. On Saturday, police revealed they had received at least 83 complaints related to the platform, involving virtual assets worth about HK$34 million (US$4.3 million). The Securities and Futures Commission earlier alerted police about suspected fraud, prompting the investigation by the commercial crime bureau. The commission on Wednesday warned potential investors to exercise caution in dealing with JPEX, which had yet to file any licence applications and allegedly falsely claimed it had obtained permits from overseas regulators. The financial watchdog also cautioned that the trading platform had advertised returns on savings products that were “too good to be true” and relied on misleading statements from social media influencers who were paid promoters. Crypto exchange JPEX is misleading investors, Hong Kong’s SFC says As a result of the warning, some users experienced difficulties trying to withdraw virtual assets from their online accounts. In its statement on Sunday, JPEX, without naming any organisations, said it was being treated unfairly. JPEX cryptocurrency exchange named in 83 complaints to Hong Kong police JPEX said it would freeze new trades while existing ones would remain effective until they matured. “We promise to recover liquidity from market makers as soon as possible and gradually adjust the withdrawal fees back to normal levels,” the statement said.

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