Crypto Platform JPEX Shuts Down Trading Amid Hong Kong Probe

(Bloomberg) -- Cryptocurrency platform JPEX has shut down some operations during an ongoing investigation by Hong Kong police.

Bloomberg's Most Read

Users will not be able to place new orders on its Earn Trading interface starting Monday, according to a statement on Sunday, referring to some wealth management products. JPEX is negotiating with third-party market makers to resolve a liquidity shortage, according to the statement.

Hong Kong police are investigating JPEX following a referral from the Securities and Futures Commission, the markets regulator. The SFC has said the company was operating in the city as an unlicensed entity, the first such warning from the watchdog since the country boosted efforts to increase Hong Kong's presence as a crypto hub by attracting more individual investors.

JPEX said market makers had frozen funds following investigations by Hong Kong authorities. Existing orders on Earn Trading will continue until the product expires, he stated. JPEX did not respond to a request for comment.

Hong Kong police have received 83 complaints against JPEX worth 34 million Hong Kong dollars ($4.3 million), according to a media report, citing Police Commissioner Raymond Siu on Saturday.

JPEX is based in Dubai, according to its website.

Most Read Bloomberg Businessweek

©2023 Bloomberg LP