December 4, 2020

DragonEx exchange without warning disabled the withdrawal of cryptocurrencies

The company said it was preparing to close due to accumulated debt and a "crisis of confidence" in trading platforms.

DragonEx Disables Input and Output Capabilityfunds of investors, as reported in the official blog. She explained her decision by a "crisis of confidence" in centralized platforms, which intensified due to the incident with one of the market leaders - the OKEx exchange.

On October 15, OKEx suspendedwithdrawal of client digital assets. After that, DragonEx users began to withdraw coins to their personal wallets, which affected the site's performance.

Another reason for the suspension of activities wasthe hack that happened in March 2019 was noted by DragonEx. Then hackers stole about $ 7 million in cryptocurrency from the platform. The assets were not returned, moreover, since March their value has increased and investors have lost potential profit. At the time of the hack, Bitcoin was worth less than $ 4,000, now it is more expensive than $ 12,000.

DragonEx warned that the withdrawal of funds is notwill be available until November 2nd. If before this moment the exchange is unable to restructure its debts and restore its working capacity, it will be forced to close.

According to information providerCryptowisser, 75 exchanges closed from January to October 5. Compared to last year, the number of platforms terminated has grown by 56%. More often than not, they are closed due to increased competition, hacks and increased regulation.