Cryptocurrency

Lawsuits, Hacks, closures: crypto-exchanges will experience a Horror week

Many crypto exchanges are currently plagued by the suffering as more and more platforms have to suddenly close, be facilitated by Hack to million, or, with a fierce face lawsuits. Here is an Overview of the recent developments.
Last week, there were several unpleasant incidents in connection with crypto exchanges and crypto-Trading harbours in the year 2019 unforeseeable risks. Certainly exchanges are the key to bring the prices at the pumps, however, you have to pull the misfortune of also magical. Last week, there were many more incidents than just the leaked BitMEX-Mails – and in the case of large and small exchanges.

Closures: DX Exchange, Golix, BC Exchange, Einstein Exchange

Last week, several markets have thrown in the towel. Lower Coinmengen, more complex regulations and a concentration of funds on larger markets led to the death of smaller markets.
DX.The Exchange was at least closed properly and provides a deadline for the withdrawal of funds. Reason for end: increased operating costs in connection with safety and legal transparency. The crypto stock exchange is now looking for a Partner to invest in you and your business save.

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The excuse of “lost password” is strongly reminiscent of QuadrigaCX, the now no longer existing canadian crypto exchange, which had to be lost after the mysterious death of the CEO of thousands of BTC.

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And then the “Einstein Exchange was still” with his missing founder, Michael Gokturk. The first signs of decline: users no longer came to their money. The stock exchange was then confiscated by the “British Columbia Securities Commission,” and a warden pass. The canadian stock market had a bad reputation – but it has managed to strangely enough, however, survival QuadrigaCX almost a year.

SIM-Swapping, crypto-Manipulation and court proceedings

The exchanges and their misconduct gave some traders the matter to court to choose. A crypto-Trader has been a victim of a SIM swap attack and now wants 1 Million dollars from Bittrex. Plaintiff Gregg Bennet sued Bittrex because of the loss of 100 BTC and the market operator to comply with the safety standards and a withdrawal had been approved.
The FTX stock exchange, a small derivatives market, is also facing a class-action lawsuit for alleged Manipulation of the crypto-market with the attempt to cause the liquidation of the Binance futures exchange. Alameda Research, the parent company of FTX, claiming that the action is frivolous and unfounded.

Crypto-exchanges to lock US traders

A number of stock exchanges is a well-known, but nevertheless dramatic change: the spin-off of its U.S. Trader on a local Partner. Binance is already there and has completed the process in October. Huobi Global warns US traders strongly positions up to 13. To close November, and withdraw funds. Poloniex and Bittrex to organize your business is also new, in order to serve regions with crypto-friendly rules.
Stricter regulations mean that liquidity and risk-taking, are limited and many of the smaller and less popular Altcoins came in terms of activity almost to a complete Standstill.
In addition, the exchanges are constantly changing your activity. After the end of the Altcoin boom, market participants had to find other sources of income. Crypto-based lending, Staking and futures markets have offset the downturn for the most adaptable Teams. Smaller market participants, however, are in a vulnerable situation and expose the Trader to the risk, to see your Bitcoins again.

About the author

Eve Manning

Eve Manning

A native Texan, Eve first started out as a Finance Analyst and later realized that her true passion was not in trading but in writing. She leverages her experience in the Finance industry to analyse and write in-depth news articles covering the Cryptocurrencies, Economy & Finance industries.