Crypto exchange JPEX has reportedly increased its withdrawal fee to up to 999 USDT after receiving a warning from Hong Kong’s Securities and Futures Commission (SFC), with its staff also reportedly going missing from its Token 2049 booth in Singapore.
On Sept. 13, the SFC, Hong Kong’s crypto watchdog, issued a warning against JPEX for allegedly promoting its services to the Hong Kong public despite not being licensed or applying for a license to operate in the jurisdiction. According to the SFC, JPEX has marketed itself on its website as a licensed and recognized platform despite being unregulated.
The SFC said it had already notified the relevant opinion leaders and over-the-counter stores of its suspicions about the exchange and asked them to cease promoting the exchange’s services.
Following the SFC’s warnings, reports of JPEX increasing its withdrawal fees to up to 999 USDT began circulating online. The move is seemingly to discourage users from withdrawing their funds from the exchange.
Another scam exchange causing thousands of victims losing their savings. 😔
JPEX is a small crypto exchange in Hong Kong that’s been offering nearly 30% APY on stablecoin staking.
— Leon.sol (@leon_only1) September 14, 2023
Apart from this, community members who attended the Token 2049 event held in Singapore reported that JPEX’s booth had been abandoned after the warning from the Hong Kong regulator.
The Platinum sponsor, JPEX, abandoned their booth at #Token2049 on the second day. 👀
On a side note, their logo looks quite similar to FTX. Is that a sign? 🤔 pic.twitter.com/KZw9o5vNgF
— J O Y (@joyxspacelatte) September 14, 2023
Some members of the community criticized the event for allowing the exchange to market itself as a sponsor of Token 2049, which is one of the biggest crypto events in the country.