JPEX exchange suspends certain operations, hikes fees amid liquidity crisis

Quick Take

  • The crypto exchange JPEX has frozen certain operations and raised withdrawal fees following a liquidity crisis on the platform.
  • The crisis follows a warning from Hong Kong’s regulators that the exchange has made misleading statements regarding its business and regulatory relationships.

Crypto exchange JPEX has raised withdrawal fees and paused the operations of the Earn program on its platform following an ongoing liquidity crisis, the company announced, claiming its third-party market makers have “maliciously frozen” the company’s funds. 

While spot trades appear to be continuing, some users have claimed that the platform is charging a 999 USDT -0.05% fee for a withdrawal, with the withdrawal maximum set at 1,000 USDT. In response, JPEX stated, “We promise to recover liquidity from third-party market makers as soon as possible and gradually adjust the withdrawal fees back to normal levels.” 

The company also froze its game platform and announced plans to solicit proposals for DAO reorganization from its users. The JPEX team did not immediately respond to a request for comment.

Hong Kong's regulators have expressed concern

The crisis follows a warning from Hong Kong’s Securities and Futures Commission (SFC) about JPEX noting that the platform made misleading statements about obtaining licenses from overseas regulators, promoted business partnerships that failed to materialize, and offered suspiciously high returns for its interest-bearing products, the regulator said


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Hong Kong police are also collecting complaints related to JPEX and have received at least 83 reports from concerned users, according to the South China Morning Post. Hong Kong’s Commercial Crime Bureau is also investigating the company, which claims on its website to be headquartered in Dubai.

JPEX is known in Hong Kong for its promotional relationship with famous actor Julian Cheung Chi-lam. However, the relationship ended when Hong Kong’s SFC added JPEX to its alert list and Cheung’s team demanded that the platform be licensed in Hong Kong before continuing to use his image, according to media reports

JPEX has categorized the actions of Hong Kong’s regulators as “unfair treatment” and has stated, “We believe that the platform will not collapse and will continue to operate steadily.” 

© 2023 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

About Author

Zack Abrams is a writer and editor based in Brooklyn, New York. Before coming to The Block, he was the Head Writer at Coinage, a Web3 media outlet covering the biggest stories in Web3. The story he co-reported on Do Kwon won a 2022 Best in Business Journalism award from SABEW. Other projects included a deep dive into SBF's defense based on exclusive documents and unveiling the identity of the hacker behind one of 2023's biggest crypto hacks — so far. He can be reached via X @zackdabrams or email, [email protected].