Nasdaq-powered DX.Exchange is going through bankruptcy proceedings, just weeks after shutting down

Quick Take

  • Crypto platform DX.Exchange is reportedly going through bankruptcy proceedings
  • 78 current and former employees of the firm behind DX.Exchange have filed a petition to dissolve the exchange 
  • Several suppliers have also sued the exchange 

Less than a month after shutting down, cryptocurrency trading platform DX.Exchange, is reportedly going through bankruptcy proceedings.

Seventy-eight former and present employees of CX Technologies Ltd., the company behind DX.Exchange, have filed a petition in an Israeli court to dissolve the exchange, the Times of Israel reported Sunday.

Estonia-registered DX.Exchange, built on Nasdaq’s matching engine and market surveillance technology, closed its operations earlier this month and said that it was on the lookout for merger or acquisition. “The costs of providing the required level of security, support, and technology is not economically feasible on our own,” the company said at the time. It also said that if a merger or acquisition does not take place on time, it could halt operations permanently.

In the bankruptcy petition, filed on Oct. 24, employees of CX Technologies claim that they have not been paid their salaries for September or October 2019 and some have not received benefits for even longer, as well as that the company has no money left in its bank accounts. The company’s owner, Pinhas Patarkazishvili, apparently agreed with this assessment and allowed the bankruptcy proceedings to go forward.

The petition also claims that CX Technologies is a successor company to SpotOption, which was raided by the U.S. Federal Bureau of Investigation (FBI) in January 2018 over suspicions that it was involved in Israel’s multibillion-dollar binary options scam. The petition also claims that most of CX Technologies’ 55 employees are former employees of SpotOption.