Crypto exchanges are having a gruesome week, as a growing number of platforms face sudden closures, multi-million dollar hacks and fierce lawsuits. Here’s a breakdown of all the latest exchange action.
Last week saw several incidents related to crypto exchanges, further showing that even in 2019, trading crypto holds unforeseen risks. Certainly, exchanges are the key to making prices tick, but are also the hotspots for outrageous messes. Last week saw much more than the BitMex email leak, with several hair-raising events linked to exchanges big and small.
Closures: DX Exchange, Golix, BC Exchange, Einstein Exchange
Last week saw several markets throw in the towel. Lowered altcoin volumes, more complex regulations, and a concentration of funds on larger markets precipitated the death of smaller markets.
DX.Exchange at least closed in an orderly manner, offering a period to withdraw funds. The reason for the closing were rising operational costs related to security and legal transparency. The crypto exchange is now seeking a partner to buy it out and salvage its business.
— DX.Exchange (@DXdotExchange) November 3, 2019
The Golix crypto exchange, based in Zimbabwe, presented a more dramatic story. The exchange’s owner claimed he lost passwords to the cold wallets, thus getting locked out of the exchange’s entire haul. Luckily, the loss was just 33 BTC, but it raised the spectre of exit scams.
Tawanda Kembo, the founder and CEO of the Zimbabwean cryptocurrency exchange Golix, claims to have lost the password to one of the exchange’s #Bitcoin (BTC) cold wallets.
— Nilanjon (@Nilanjon1) November 3, 2019
The “lost password” excuse looks suspiciously like the one for QuadrigaCX,