Japanese Crypto exchange JPEX is on the verge of closure, with the platform blaming the Hong Kong authorities and third party, while the authorities claim it is a rugpull.
Reasons to consider JPEX a scam
Hong Kong's Futures and Exchange Commission (SFC) has initiated proceedings against JPEX Exchange by accusing it of being unregistered. JPEX also stopped withdrawals some time ago and later restarted withdrawals under pressure from the crypto world, but kept the withdrawal fees so high that no withdrawals could actually be made. Trading and earning have also been stopped.
JPEX's Argument
SFC is now investigating JPEX, and JPEX Exchange has claimed in its defence that a third-party market arbitrator along with local authorities have frozen its assets, causing a liquidity crisis on the platform. Along with this, JPEX has promised that all operations will be normalised after the assets are defrozen.
Thoughts
Corruption among the authorities or a biassed attitude towards the crypto industry is possible; exchanges may also be scam platforms that fleece investors of money. Therefore, I neither have much confidence in SFC nor in JPEX exchange, but at this moment, JPEX's logic seems unclear. To get the correct information, we will have to explain it to all the parties, but the final decision will be taken only when the time comes.
