JPEX, the crypto exchange that claims to be regulated in the USA, Canada and Australia, caused a scandal after the warning of the Hong Kong authorities. It demanded $1,000 in response to users’ withdrawal requests.
JPEX increases withdrawal fee after Hong Kong warning
Cryptocurrency exchange JPEX has increased its withdrawal fee to up to 999 USDT, following a warning by the Hong Kong Securities and Exchange Commission (SFC). This situation puts a huge obstacle in front of users who want to withdraw their funds from the stock market after the news.
On September 13, Hong Kong’s crypto regulatory authority, SFC, issued a warning to JPEX. This warning includes that the company is actively promoting its services to the people of Hong Kong, despite being unlicensed. According to the SFC, JPEX was marketing itself as a regulated and popular platform on its website.
The SFC has informed industry leaders and OTC providers of its suspicions in this regard. The warning asked JPEX to stop promoting its services. Following this warning from the Hong Kong regulator, reports began to appear online that JPEX had increased the withdrawal fee to 999 USDT. This step is one of the possible ways to prevent users from withdrawing their money from the exchange.
The community is angry
Apart from this situation, some community members who attended the Token 2049 event held in Singapore reported that the JPEX booth was abandoned following a warning from the Hong Kong regulator. Some people criticized the event for allowing the company to market itself as a sponsor of Token 2049. Token 2049 is one of the largest crypto events in the country. JPEX’s permission to market itself as a sponsor was received negatively by many attendees.
Meanwhile, reports began circulating online that JPEX was increasing withdrawal fees as high as 999 USDT following SFC’s warnings. This extra fee demand is still effective until now. “Another fraudulent exchange that caused thousands of victims to lose their savings,” X’s Leon.sol wrote about JPEX.
According to the details provided by Leon.sol about the crypto exchange:
JPEX is a small crypto exchange based in Hong Kong that offers around 30% APY on stablecoin staking. There is also an exchange token, JPEX, which has a fully diluted value of $200 billion, and they advertise that it will reach $1 in Hong Kong taxi, currently it is $0.02. Any cryptocurrency expert will instantly identify this as a scam and ignore it. But their marketing strategy is not aimed at CT veterans, but rather at novice investors and foreigners on the streets of Hong Kong.
Today Hong Kong police attempted to make an arrest but failed because they were still technically allowing withdrawal. The maximum withdrawal is $1000 and the fee is $999. As a business they have the right to increase wages. I don’t think this excuse will keep them for very long, maybe that’s enough time to risk flight. I hope the customers will be made whole, but I doubt it.
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