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DragonEx crypto exchange considering shutdown amid OKEx ‘crisis of trust’

DragonEx is shutting down deposits and withdrawals of all cryptos.

DragonEx crypto exchange suspended deposits and withdrawals of all digital currencies on its platform due to issues triggered by OKEx’s ongoing withdrawal freeze.

In an official announcement on Oct. 21, DragonEx said that the OKEx freeze triggered a “crisis of trust” in centralized exchanges among its customers, which in turn fueled a run on funds and deteriorated the platform’s service.

DragonEx is now working on a restructuring plan in order to resume deposits and withdrawals on the platform. The company’s representatives said that the exchange will have to shut down if they don’t manage to successfully reorganize by Nov. 2, 2020.

The exchange also mentioned that the exchange suffered a large-scale hack in March 2019, costing over $7 million in user losses. The company’s executives wrote that after more than a year of hard work, the stolen assets have not been recovered.

News of DragonEx’s impending closure comes shortly after OKEx partially resumed some services on its platform after suspending withdrawals on Oct. 16. On Oct. 21, OKEx announced that it is resuming its peer-to-peer digital currency exchange services with three fiat currencies like the Chinese yuan, the Indian rupee and the Vietnamese dong.

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