Hong Kong-based crypto platform JPEX has reportedly suspended trading and seen one person connected to it arrested after an investigation determined that it has been operating in the country without a license, reports CoinDesk.
The Hong Kong Securities and Futures Commission (SFC), which carried out the probe, also claimed that it has received numerous complaints about the exchange.
As a result of the investigation and subsequent action, JPEX says it’s delisting all transactions on its Earn Trading interface and ensuring ongoing orders. It also says that it will “gradually adjust the withdrawal fees back to normal levels,” and is even considering restructuring as a Decentralized Autonomous Organization (DAO).
In a blog post published Monday, the exchange said: “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.
“They demanded more information from the platform for negotiation, restricting our liquidity and significantly increasing our daily operating costs, leading to operational difficulties.”
“We must restructure at this stage to redefine our operational direction and jointly formulate future strategies for JPEX,” it added.
“Toward this end, we will publicly collect users’ suggestions, discuss proposals with the dedicated team, and select reasonable plans for a user referendum. The specific implementation of the referendum will be announced the following day. We look forward to users’ participation and moving forward together.”
Read more: Just two exchanges registered in Hong Kong as crypto ban lifts
According to reports in Taiwan, JPEX’s Taipei office is currently empty and authorities have questioned influencers hired by the firm.
Visitors to JPEX’s booth at the recent Token2049 conference in Singapore also reported that the spot was seemingly abandoned by the second day.