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DX.Exchange Crypto Platform, Built on Nasdaq Technology, Goes Bankrupt after Shutting Down

Not even a month has passed since its shut-down, and the Nasdaq-powered crypto trading platform DX.Exchange is going through bankruptcy.

Times of Israel released on Sunday a report in which it’s saying 78 present and former employees from CX Technologies Ltd., which is the DX.Exchange’s parent company have filed in court a petition for the exchange to be dissolved.

DX.Exchange Said it Was Looking for an Acquisition or Merger

Registered in Estonia and built on the same market surveillance technology and engine like Nasdaq, DX.Exchange shutdown this month, saying it’s looking to be acquired or to merge. It also explained that costs for support, technology and security were no longer feasible for the company to function on its own and that if a merger or an acquisition doesn’t happen, its operations will be permanently halted.

CX Technologies Employees Claim They Haven’t Received their Salaries

The bankruptcy petition against CX Technologies was filed on October 24th and claims the September and October salaries haven’t been paid to the employees, neither the benefits. It also says the company has empty bank accounts. Pinhas Patarkazishvili, the owner of CX Technologies agreed with the petition and started the bankruptcy proceedings for DX.Exchange.

It’s also mentioned in the petition that CX Technologies is a successor of SpotOption, a company that was investigated by the US Federal Bureau of Investigation (FBI) back in January 2018, for being involved in the famous multibillion-dollar binary options scam from Israel. In the same petition, it’s also being said that 55 people working for CX Technologies have previously worked for Spot Option.

DX.Exchange Denies any Involvement with SpotOption

Earlier this year, it has been discovered that DX.Exchange may have something to do with SpotOption, as Patarkazishvili’s wife, who was the only shareholder at DX.Exchange, also owned 90% of SpotOption. DX.Exchange has always denied being related with SpotOption, while SpotOption has denied being involved in any wrongdoing.

DX.Exchange Has Also Been Sued by Suppliers

As if the employees’ petition wasn’t enough, CX Technologies was also sued by Israeli suppliers on the allegation that it hasn’t paid its bill. The companies suing are White Hat Ltd., which offered DX.Exchange cybersecurity services and Bee2See Dotan B.S. Solutions. This last mentioned firm offered DX.Exchange marketing services. Malam Team provided the servers and is among the creditors too.

DX.Exchange Scrubbed Mentions of Tokenized Securities on its Platform

Launched in January, DX.Exchange provided the means to trade in cryptocurrencies and tokenized securities like Apple and Tesla stocks. Earlier this month, it has deleted any mention about tokenized securities from its platform.

The CEO of the company, Daniel Skowronski, gave the explanation that the exchanged forwarded its application for a multilateral trading facility (MTF) license and was about to have it granted, but under another entity. He also said DX.Exchange wanted to move digital stocks on the MTF and to trade the Security Token in the same way.

Many Voices Calling the Shutting Down of DX. Exchange an Exit Scam

As soon as DX.Exchange announced that is shutting down, people on social media started to call its strategy an exit scam, having Skowronski commenting that such scam claims are ridiculous. The same Skowronski has said the company hasn’t yet filed for bankruptcy and that talks about an acquisition are taking longer than expected.