Quite a few cryptocurrency exchange platforms have disappeared over the past few years. Some businesses filed for bankruptcy, whereas others were never heard from again. We have looked at some of the “lesser-known” exchanges disappearing over the past few years. All of this goes to show storing funds in an exchange wallet for an extended period of time is asking for trouble.
There has always been a lot of controversy surrounding the MCXNow exchange. After shutting down in 2013 for an extended period of time, the platform ultimately resurfaced. However, the revitalized exchange platform did not last all that long and was shut down by the end of 2014 once again. At that time, the developer announced he would “enter a new plan of development”, which would have lead to a rebrand.
Changing the name from MCXnow to MtMOX was perhaps the worst idea anyone in the cryptocurrency world has had to date. Thankfully, this rebrand never occurred, yet MCXNow was never heard from again either. When the exchange shut down on November 15 of 2014, a lot of users were confused as to what would happen next. Unwithdrawn funds were never returned to investors unless they paid a US$50 fee. All things considered, this shady exchange’s demise has been a blessing for a lot of people.
Back in November of 2013, China-based bitcoin exchange GBL suddenly went offline. Some people initially assumed this was due to a hack, but it became evident the operators simply ran off with US$4.1m worth of bitcoin. The office address listed on the website was also fictitious, which seems to confirm the nefarious suspicions. Several reports were filed with the Hong Kong police, although no one ever saw their funds back. Never trust a centralized exchange with your money, it is that simple.
The year 2015 was not all that rosy for bitcoin exchanges. Hong Kong-based MyCoin has shut down and stole over US$386.9m worth of investor funds in the process. Although that number seemed quite steep at the time, it remains unclear how much money was effectively stolen. All victims have filed reports with the local police department to bring the perpetrators to justice, though.
Some people speculate MyCoin was never an actual bitcoin exchange to begin with. Instead, the company had a lot of traits of the average Ponzi Scheme, as investors had to find new clients before they could get their money back and make a profit. Investors were also lured in with promises of cash rewards, cars, and cruises based on their performance. The police have arrested multiple individuals in 2015 and 2016, although it is doubtful any investor saw their money back.
Even in 2017, cryptocurrency exchanges tend to disappear all of a sudden. Bitcurex, Poland’s oldest exchange, went offline in February of this year. A total of 2,300 bitcoins went missing, although it remains unclear what has happened exactly. All of the company’s social media accounts have been deleted in the process as well. The owner of the platform has not been seen or heard from ever since. Interestingly enough, the company had been forced to shut down after a US$1.5m “hack” in 2016. Many people speculate the team running the platform is responsible for the theft and they threw in the towel this year after failing to repay the money.
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