Crypto exchanges are having a tough time since there is a growing number of platforms that face sudden hacks, lawsuits, and closures as we are reading further in the latest cryptocurrency news.
Over the past week there were several incidents that were related crypto exchanges further showing that even in 2019, the trading crypto holds major risks. Certainly, the crypto exchanges are the major tool for making the prices spike but are also the hotspots for huge messes as well. Last week, there was much more than the BitMEX email leak with multiple similar events that were linked with smaller exchanges.
The lowered altcoin volumes and regulations but also the concentration of funds started the death of smaller markets. DX.Exchange closed as well with an offered period of time to withdraw funds. The reason for the closing was the increased operational costs related to security and legal transparency. The crypto exchange is looking to find someone who will buy it out and save the business.
The golix crypto exchange that was based in Zimbabwe, also had a problem since it claimed to have lost the passwords to the cold wallets and got locked out of the exchange’s entire haul. The loss was just 31 BTC but it raised the specter of exit scams. The ‘lost password’ excuse, looks extremely suspicious reminding much of QuadrigaCX which is now out of order and lost thousands of BTC after the CEO passed away.
Also, there was the Einstein Exchange and the missing founder Michael Gokturn already expressed signs of distress so the users are complaining of difficulties reaching their assets. The exchange was seized and handed to an overseer by the British Columbia Securities Commission. Exchanges and their transgressions made some traders choose other paths including litigations. One crypto trader who was a victim of a SIM-swap attack, decided to sue Bittrex for $1 million after he lost 100 BTC stating that the operator failed to follow the security standards and allowed withdrawal.
The FTX exchange also faced a class-action lawsuit for allegedly manipulating the crypto market and attempted to cause liquidations on the Binance futures exchange. The parent company of FTX Alameda Research claimed the lawsuit was frivolous and unfounded.
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