Hong Kong cryptocurrency exchange JPEX has suspended trading following an probe by the Hong Kong Securities and Futures Commission (SFC), which resulted in the arrest of one person attached to the exchange, according to a local media report.
“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 said in a blog post. “They demanded more information from the platform for negotiation, restricting our liquidity and significantly increasing our daily operating costs, leading to operational difficulties.”
Amid these liquidity challenges, JPEX said it will delist all transactions on its Earn Trading interface as of Monday, while ensuring ongoing orders and adjusting withdrawal fees. The exchange also said it is considering restructuring as a Decentralized Autonomous Organization (DAO).
On its website, JPEX says it is licensed by securities authorities in Australia and has registration with the U.S. Financial Crimes Enforcement Network (FinCEN) as a Money Services Business (MSB).
JPEX’s thinly-traded exchange token, JPC, is down 21% during the last 24 hours.