Crypto Exchange DX.Exchange Controversially Shuts Down Citing Operational Costs
- DX.Exchange is suspending its services.
- The company’s board is looking for an acquisition or merger.
- DX.Exchange has been linked to a scam.
DX.Exchange announced that it would be halting operations due to economic reasons.
DX.Exchange Shuts Down
In a blog post, DX.Exchange informed its users that the operational costs of running the cryptocurrency exchange led the firm’s board of directors to suspend its services temporarily. Meanwhile, the digital assets exchange will be looking to merge with another company or for an outright sell-out.
“The costs of providing the required level of security, support, and technology is not economically feasible on our own,” reads the announcement.
If the firm does not complete the merger or the sell, then it will shut down completely.
In the meantime, deposits and trading services in the exchange have been suspended. Users will be able to withdraw their funds by sending an email to the exchange’s support team before Nov. 15. All funds remain safe and are required to be returned to allow a merger, sale, or shut down to occur, as stated by DX.Exchange.
According to Notsofast, the move to close the cryptocurrency exchange can be seen as a “simple and pure” exit scam. The altcoin miner said that Daniel Skowronski, co-founder of DX.Exchange, will be held accountable for any wrongdoings.
This is not the first time that this firm has been called a sham. Earlier this year, CCN reported that Limor Patarkazishvili, the sole shareholder of DX.Exchange, owned 90 percent of SpotOption. This was a binary-options-software provider based in Israel. It was one of more than 100 firms that scammed countless customers around the world, according to the Times of Israel.
“Fraudulent Israeli binary options companies ostensibly offer customers worldwide a potentially profitable short-term investment. But in reality — through rigged trading platforms, refusal to pay out, and other ruses — these companies fleece the vast majority of customers of most or all of their money. The fraudulent salespeople routinely conceal where they are located, misrepresent what they are selling, and use false identities,” reads the article by Times of Israel.
The rumors that surround DX.Exchange are very significant to remain nonchalant about the recent announcement. Although the firm said it will be looking to merge with another company or be acquired, it is unknown how long it will take. While that happens, it will be wiser for users to withdraw their funds off the platform immediately.
This article was edited by Samburaj Das.