Crypto exchange CoinEx to shut down after 9 years, citing market slump

Crypto exchange CoinEx announced that it is shutting down after nine years, citing operational difficulties.

The exchange will stop accepting new registrations from Sept. 15, while withdrawals will remain open until Dec. 22, according to its announcement. Most exchange services will cease by Sept. 29.

Any unwithdrawn assets after Sept. 29 may be sold into USDT. After Dec. 22, the remaining USDT on the platform will be moved to an independent custody that will charge a monthly fee of 5% of the original balance. The deadline for custody claims is Aug. 22, 2028.

In a Monday announcement, the Seychelles-based exchange cited the prolonged market downturn, shrinking industry volume and liquidity, and rising regulatory requirements and compliance costs as key reasons for the decision.

Hard truth

"After much reflection, I have come to accept a hard truth," CoinEx Founder and CEO Haipo Yang wrote on X. "The security and compliance risks of running a crypto exchange have become increasingly difficult to contain."

Yang added that he seriously considered selling the trading platform but ultimately decided against it because he wanted a "clean ending."

"Nine years, millions of users. I did not turn CoinEx into the 'great' exchange I once hoped it would become," Yang said. "But I can give it a decent ending: making sure users can withdraw their assets in full, giving my employees a dignified farewell."

While serving users in more than 200 countries and regions, CoinEx left the U.S. market in 2023 after settling a lawsuit filed by the New York attorney general, which accused the exchange of operating without proper registration.

Earlier this year, TRM Labs published a report claiming that CoinEx had processed more than $3.8 billion in flows linked to Iranian entities since 2019, including activity tied to Nobitex and other sanctioned counterparties.