CoinEx will end its operations after 9 years, suspending new user registrations on Tuesday and fully closing the platform by December 22.
The Hong Kong-based company attributed the decision to a prolonged period of weak market conditions, declining trading volume and liquidity in the sector, as well as compliance costs that, according to the platform, exceeded acceptable limits.
What led CoinEx to shut down operations?
The closure marks the end of a long run of regulated market operations. CoinEx left the United States in 2023 following an agreement with New York Attorney General Letitia James.
The settlement returned more than US$1.1 million to investors in New York and added more than US$600 thousand in state fines. The exchange was also banned from making its platform available in the state.
Token investors will have an exit above market value. CoinEx will repurchase all remaining CoinEx Token (CET) for 0.005 USDT each, with no quantity limit and no additional requirements.
The CET was trading at US$0.00466 on Tuesday, about 7% below the buyback price and approximately 97% lower than the peak of US$0.15029 recorded in July 2018, according to BeInCrypto Markets data.
Follow us on X to get news in real time
Is time running out for users?
Futures contracts entered reduction mode starting only on Tuesday. Fiat services, margin, loans, Earn, staking, and strategic operations also will not accept new orders from the same day.
All non-spot services end on September 22. Spot trading will be closed on September 29 as well, along with CoinEx Smart Chain (CSC) and the decentralized exchange OneSwap.
CoinEx states that its reserves ratio exceeds 100% and that all users’ balances are fully backed. Withdrawals will remain available until December 22, regardless of other shutdowns.
Unwithdrawn assets will incur a cost. USDT that is not withdrawn will move to independent custody and will be charged a monthly fee of 5% on the recorded balance. Requests may be made until August 22, 2028.
CoinEx Wallet and CoinEx Vault operate independently and remain active. The company also warned users to disregard any communication issued in its name from now on.
“Any purported ‘new announcement,’ ‘supplementary rule,’ or ‘policy change’ released afterward on behalf of CoinEx is fraudulent.”
— CoinEx
The volume that is actually withdrawn from the platform before December 22 will determine the shutdown order.
A CoinEx article stating a deadline of December for withdrawals while the exchange ends operations was first seen in BeInCrypto Brazil.