DragonEx cryptocurrency exchange suspended deposits and withdrawals of all virtual assets on its platform due to issues triggered by OKEx’s ongoing withdrawal freeze.
Within an official announcement on 21st Oct., DragonEx added that the OKEx freeze triggered a “crisis of trust” in centralized exchanges among its users, which successively fueled a run on funds and deteriorated the platform’s service.
DragonEx is now performing on a restructuring plan so as to resume deposits and withdrawals on the platform. The company’s representatives said that the exchange will need to pack up if they do not manage to successfully reorganization by 2nd Nov. 2020.
The exchange also mentioned that the exchange suffered a large-scale hack in March 2019, costing over $7 Mln in user losses. The company’s executives wrote that after over a year of diligence, the stolen assets haven’t been recovered yet.
News of DragonEx’s impending closure comes shortly after OKEx partially resumed some services on its platform after suspending withdrawals on 16th Oct. Earlier on 21st Oct., OKEx added that it’s resuming its p2p digital currency exchange services with three fiat currencies just like the Chinese yuan, the Indian rupee, and therefore the Vietnamese dong.