The third-party market makers of Dubai-based cryptocurrency exchange JPEX are allegedly responsible for intentionally withholding funds, which caused a liquidity crisis. According to the exchange, “unfair treatment” from Hong Kong-based institutions, coupled with unfavourable news, caused market makers to wrongly freeze their assets, which in turn caused a liquidity problem that compelled the exchange to raise withdrawal fees. Users have also been complaining about a 999 USDT fee for withdrawals on a maximum sum of 1,000 USDT. Operations connected to the exchange’s Earn product were delisted.
JPEX declared that after talks with external market makers were over, withdrawal costs will be gradually increased “back to normal levels.” The exchange will also solicit user proposals for restructuring using a decentralised autonomous organization. The business was recently warned by the Hong Kong Securities and Futures Commission for soliciting business from Hong Kong citizens without a permit. In response, JPEX claimed that it had not requested any licences in Hong Kong and that it was offering investors a high rate of return. In an effort to repair relations with users and handle the liquidity situation, the exchange has been proactive.