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Why some of the crypto exchanges closed down?

Why some of the crypto exchanges closed down?

  • 8 October 2020
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According to Digital currency market news and analysis of MinerLand, in 2020, about 75 digital currency exchanges have been closed. This happened as the result of unauthorized access by hackers, fraud, or simply closed for unclear reasons.

According to reports of a company that evaluates exchange institutes, these exchanges were closed because of certain reasons. five of them for frauds, four of them such as Altsbit and Nerae get involved in attacks from hackers.

Of the above cases, 31 exchanges closed voluntarily, while 34 exchanges disappeared without any reports. Only two exchanges, in 2020, the Dutch NLexch and Chilean Chilebit, were closed by their governments.

Does the trend of technology affect the prosperity of exchange jobs?

Some emerging trends can explain why many little exchanges break down. The development of DeFi and the advent of distributed exchanges in 2020 have removed many small corporations.

Two of the newest large exchanges with uncertain futures are BitMEX and KuCoin. BitMEX executives had violated banking regulations and criminal cases have been filed against them. The security company Chainalysis reported that this exchange has been involved in a “high risk” situation.

The security company has warned a number of its prominent clients, including government delegates, banks, and exchange offices. They announced that any exchange with law-breaking demands against it should be considered risky.

What was the reaction of users to these events?

Some traders appear to be wary of the future of BitMEX. According to the reports of Coin Metrics, between September, more than $ 500 million Bitcoin withdrew from the exchange.

In late September 2020, hackers stole $ 200 million from the Singapore-based KuCoin exchange. After that, they are trying to remove the doubts of users by offering several security updates to ensure clearness. Based on their last announcement update on October 6, various official inspections were investigating the account assets of the company.

Crypto Industry did not only lose Cryptographic exchanges. According to the notes of the users in the deadcoins.com, about 2,000 digital coins and tokens have been removed.

What do crypto exchanges do after being hacked?

After a serious hack, KuCoin digital currency exchange announcement was that they are recovering their funds and withdrawals. KuCoin Exchange has announced that it will gradually recover all funds and payment services. And they also promised to resume the full USDT procedures in a short time. They asked their users to follow only the official announcements.

The limited restoration of cryptocurrencies at KuCoin came about 10 days after the hacking crisis in late September. At the same time, the exchange estimated that users lost $ 150 million. However, the Chainalysis firm evaluated losses at $ 275 million.

KuCoin Global CEO previously told Cointelegraph that the violation influenced hot wallets. They were related to the BTC, ETH, XRP, and ERC-20 tokens. Large cryptographic projects then froze many of the deflected ERC-20 tokens.
On October 3rd, the CEO declared that KuCoin principals had succeeded in finding the hacking suspects. Thus, they mentioned this with substantial evidence in hand.

One response to “Why some of the crypto exchanges closed down?”

  1. Yanga Jili says:

    Good to know though

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