Nasdaq cryptocurrency platform closes

DX.Exchange, an Israeli cryptocurrency trading platform which offered opportunities to buy Nasdaq-listed stocks using virtual ‘tokens’, has closed and is set to file for bankruptcy amid controversy about its founders

The platform opened for business at the beginning of this year, and accepted a range of cryptocurrencies as payment for trading in the tokenized stocks of public companies, such as Google, Facebook and Amazon. It was operated by CX Technologies which is registered in Estonia.

However, in a blog post earlier this month, DX.Exchange stated: ‘We must inform the community that the board of directors of DX.Exchange has decided to temporarily close the exchange as we pursue a merger or outright sell of the company.

‘The costs of providing the required level of security, support and technology is not economically feasible on our own.

‘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.’

The 78 former employees of the company, who are largely software developers based in Israel, have now petitioned for the company to be dissolved.

‘The bankruptcy petition contains controversial allegations that CX Technologies has ownership links with another Israeli company called SpotOption. SpotOption, which provided a broking platform for binary options trading, closed in 2018 and has been subject to an FBI investigation over claims that it had scammed customers around the world.’

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