DragonEx, the cryptocurrency exchange, is shutting down deposits and withdrawals of all cryptos due to issues triggered by OKEx’s ongoing withdrawal freeze.
It has been reported that 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.
However, DragonEx is now working on a restructuring plan in order to resume deposits and withdrawals on the platform, as the company’s representatives said that the exchange will have to shut down if they don’t manage to successfully reorganize by November 2, 2020.
Singaporean crypto exchange @Dragonex_io might close down due to a "crisis of trust" in centralized exchanged triggered by @OKEx ’s withdrawal freeze https://t.co/HEws0gaVOi — Cointelegraph (@Cointelegraph) October 21, 2020
Also, the exchange mentioned that it 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 October 16.
Thus, on October 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.
#Announcement: #P2P Buy/Sell of $CNY, $INR & $VND will resume @OKEx starting 12:00pm Oct 21 (UTC). Buy Crypto via Fiat Gateway will also be reactivated, however, Sell Crypto & withdrawal are still suspended. Learn more: https://t.co/e47ghmmwvR Further updates to follow. pic.twitter.com/hRB4td60Ik — OKEx (@OKEx) October 21, 2020
Source: Cointelegraph