Estonian Cryptocurrency Exchange Dx.Exchange Announces The Closure Of Trading
On Sunday Dx.Exchange, an Estonian trading platform that allows users to invest in shares of companies listed on the NASDAQ stock exchange announced a temporary closure of trading and the suspension of all operations.
The board of directors of Dx.Exchange decided to close the exchange "to determine the merger or direct sale of the company." The platform blog says that the company does not have the necessary funds to ensure the proper level of service and security. If the company fails to sell, the exchange will finally cease its work.
The platform said that all customer assets are safe and will be returned to their owners. However, the community is unhappy with the requirements that the exchange presented for the withdrawal of funds. Some even believe that no one will return money to users.
"You're probably not getting your money back."
— Chris Blec (@ChrisBlec) November 3, 2019
To refund, Dx.Exchange customers must provide a copy of the first page of the identity card by which they were registered on the platform; e-wallet address for each individual cryptocurrency to be withdrawn; the withdrawal amount in each cryptocurrency and a selfie with a sheet of paper on which “DX Exchange” is written and the application filing date.
A request for withdrawal of funds should be made from the same email address from which the user was registered on the platform. The request must be submitted before November 15, 2019, otherwise “the withdrawal process may be disrupted”.
The launch of the Dx.Exchange platform became known in May 2018. Its creators said that the platform will be based on the infrastructure of the NASDAQ stock exchange, for example, it will adhere to the same regulatory standards and use the DIX protocol from NASDAQ, which will provide peer-to-peer token trading.
On January 7, 2019, the platform was launched. Its creators said that Dx.Exchange will allow trading tokenized shares of 10 large companies from the NASDAQ listing.
Almost immediately after the launch of the platform, the online edition of Ars Technica reported that Dx.Exchange contains several serious vulnerabilities. One of the traders said that while working with the platform, his browser sends authentication tokens of the JSON Web standard, which, when passed through the decoder, allowing users to find out the email address, the link to reset the password from the account and other confidential user information.
He also said that he managed to collect tokens belonging to other platform clients. Theoretically, if this data fell into the hands of cybercriminals, they would be able to crack the accounts of exchange customers.
Dx.Exchange quickly responded to the publication in Ars Technica. Representatives of the platform then said that the bug was "immediately identified and fixed."
Today DXCASH opened for trading with $1.45 being the first price traded. At the time of writing, DXCASH is trading around $0.10 on very low volume. We believe that most of the sellers are people who received DXCASH in last year airdrop or others selling just for the sake to sell. pic.twitter.com/zZ9Dm0DlTP
— DX.Exchange (@DXdotExchange) September 26, 2019
At the end of September, Dx.Exchange issued its own token - DXCASH. Trades opened at around $ 1.45 per token, but literally in a day, the price fell to $ 0.10.
The platform explained this by the fact that the bulk of sellers are people who received tokens during the airdrop. Representatives of Dx.Exchange argued that as soon as the pressure from the sellers subsides, the token will reach higher positions.