Crypto Exchange Tokenising NASDAQ Stocks Closing Down; Community Raises Red Flags

DX Exchange, which had made headlines in the crypto sphere in January at the time of its launch, has announced that it is temporarily closing down. The exchange has delineated an elaborate KYC process for users to withdraw their funds from the exchange. The crypt community is calling the move an “exit scam”.

DX Exchange Looking For an Acquisition or Merger

DX Exchange, in a blog post published on November 3, announced that the Board of Directors had decided to temporarily close the exchange as the exchange sought a merger or an acquisition. The reason they cited for closing the exchange was economic infeasibility.

“The costs of providing the required level of security, support and technology is not economically feasible on our own,” the blog post said.

Furthermore, the exchange may not resume its operations at all and “take appropriate action” in case the merger or acquisition is not achieved in time.

Elaborate Funds-Withdrawal Procedure

The exchange has already suspended deposits and trading. It also commented that the users’ funds are safe.

ALL client FUNDS are SAFE and need to be returned to allow a merger/sale to proceed.

Users, who wish to withdraw funds from the exchange will have to fulfil an elaborate KYC procedure. It includes submitting a list of documents to the exchange. The documents include a copy of the front page of the same government ID that the users had used to open their accounts, the wallet address of each cryptocurrency that the users want to withdraw, the amount of each withdrawal per cryptocurrency pair, a selfie of the users holding a paper with the date November 3 and the words DX Exchange.

The users have to use the same email id for submitting the documents that they used for registering on the exchange.

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