Israeli DX.Exchange enters bankruptcy proceedings following closure

Israeli cryptocurrency trading platform DX.Exchange, built using Nasdaq order matching software and market watching technology, has now filed for bankruptcy following its closure, according to the Times of Israel.

CX Technologies, the firm behind the crypto exchange, was registered in Estonia but ran the exchange in both Israel and Cyprus.

There have been rumours that the platform was the latest offering from known fraudulent exchange SpotOption, which was raided by FBI investigators in January 2018. DX.Exchange denies any involvement with the firm.

The exchange’s Cyprus operations were closed on September 24 2019 after violating the country’s securities laws. Coin Rivet reported on November 4 that the exchange had ceased trading.

Its parent company in Cyprus, MPS Marketplace Securities, also previously traded under the name SpotOption Exchange, which seemingly provides a clear link between the two firms.

DX.Exchange offered users the ability to buy Nasdaq-listed stocks, which was highly publicised at the time of launch. The exchange even listed Nasdaq as a partner and technology provider.

Bloomberg News has also been linked to the exchange following a crypto summit in London in December 2018, where DX.Exchange’s CEO Daniel Skowronski was invited to give the opening speech.

Both Nasdaq and Bloomberg are yet to comment on the exchange’s closure.

Petition launched for company to close

The company claims to have insufficient funds remaining to continue business operations.

A blog post released by the exchange in November – now unavailable – indicated that the firm was seeking other companies to merge with DX.Exchange.

However, it became clear that employees of the exchange, who were privy to the financial details and business practices of the company, would rather see it close its doors for good.

The ex-employees of DX.Exchange have now petitioned for the company to be dissolved, filing a report on October 24 which contained allegations that the company was involved in a wider binary options scam.

CX Technologies is allegedly 90% owned by Malhaz Patarkazishvili, the former owner of SpotOption, with the remaining 10% owned by Skowronski.

Trustees of CX Technologies have now been appointed with the task of finding additional sources of funds to pay creditors of the defunct exchange.

Disclaimer: The views and opinions expressed by the author should not be considered as financial advice. We do not give advice on financial products.

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