DX.Exchange to Shut Down; Seeks Acquisition or Merger

U.K.-based cryptocurrency exchange DX.Exchange on November 3, 2019, announced that it has decided to temporarily close its operations. The exchange’s decision to shut shop comes at a time when it is pursuing a merger or outright sale of the company due to financial crunch.

DX.Exchange Decides to Call it Quits

DX.Exchange, a digital assets exchange that popped into the limelight this year by offering traders the service to trade tokenized stocks of Tesla, Apple, and other major companies, has decided to call it quits, at least temporarily.

In an official blog post, the exchange stated that the costs of providing the required level of security, support, and technological expertise for a reliable and trusted exchange platform was not economically feasible for the firm.

Now, having made the decision to bid adieu to the fast-paced cryptocurrency industry, DX.Exchange is looking for avenues to achieve “success for its shareholders.”

Regarding the decision to shut down its operations, DX.Exchange’s blog post reads in part:

“The board believes this is the best opportunity for DX.Exchange to achieve success for its shareholders and compete in this challenging market. In the event a merger or sell is not completed in a timely matter then the exchange may not resume operations and take appropriate action.”

More information will be shared with customers as it comes out, the blog post reads.

Notably, existing DX.Exchange customers have until November 15, 2019, to request the withdrawal of their crypto holdings. In order to withdraw the funds, users are required to send an email to [email protected] requesting the same. More can be learned about the exact withdrawal procedure via the blog post.

Exchanges and Hacks

It’s worth pointing out that earlier this year, DX.Exchange made news for reasons it would have rather avoided when it came to light that a system bug had resulted in the leak of login details of some of the exchange’s customers and employees.

Whilst the crypto industry continues to polish its mechanisms to offer utmost safety to its participants, instances of exchange hacks, scams, and frauds seem to show no slowdown in their frequency or magnitude.

BTCManager reported on May 8, 2019, how Malta-based cryptocurrency exchange Binance was hacked by cybercriminals. The security intruders were able to steal close to 7,000 BTC from the exchange’s hot wallet which was approximately worth $40 million at the time.