DX.Exchange Going Through Bankruptcy Proceedings

November 25, 2019 6:55 PM UTC

DX.Exchange was a Nasdaq-powered cryptocurrency exchange. The exchange allowed users to trade cryptocurrencies with no trading fees on a peer-to-peer basis.

The company behind DX.Exchange has recently announced that they are going through bankruptcy after 78 of its employees petitioned it in an Israeli court.

The petition was filed back on October 24 and claimed that the company behind the exchange was, in fact, CX Technologies Ltd, an Israeli company. The official website of DX.Exchange has always stated that the exchange was owned by an Estonian company.

The petition also claims that most employees of CX Technologies were also former employees of SpotOption, a company that was raided by the FBI in January 2018.

Furthermore, in the petition, employees claimed that CX Technologies did not pay them their salaries for September and October 2019.

Additionally, it seems that several Israel suppliers like White Hat Ltd which provided cybersecurity services to DX.Exchange have sued the company in the past months for not paying them.

There was a lot of hype around DX.Exchange and several notable news media websites wrote very favorable comments about it.  Bloomberg News wrote back in January 2019 that:

A digital exchange opening next week will enable investors to trade in companies including Apple Inc., Facebook Inc. and Tesla Inc. outside of the U.S. even when the stock markets are closed.

DX.Exchange officially announced the suspension of deposits and trading back in November 3 citing operational costs.

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