Gone in a Flash: 11 Cryptocurrency Exchanges That Closed Their Doors
Over the years, the cryptocurrency industry has seen a lot of ups and downs, and the closure of crypto exchanges is one of them. There have been numerous crypto exchanges that have shut down due to various reasons, including hacking attacks, fraud, regulatory issues, and mismanagement. In this article, we will discuss the top 11 crypto exchanges that were shut down.
Hopefully this list serves as a warning to crypto investors - don't hold your coins on exchanges.
Mt. Gox was a large crypto exchange that was shut down in 2014. The exchange was based in Japan and handled more than 70% of all bitcoin transactions at the time of its closure. Mt. Gox was hacked which led to the company filing for bankruptcy and leaving many customers without their funds.
BitGrail was an Italian cryptocurrency exchange that was shut down in 2018 after it lost approximately $170 million worth of cryptocurrency. The exchange's founder, claimed that the funds were stolen due to a hack, but many customers accused him of mismanaging the exchange and stealing their funds.
LocalBitcoins was a Finnish bitcoin exchange that allowed users to trade bitcoin with each other coins directly. The exchange was popular among users who preferred to trade bitcoin in a decentralized manner. However, in 2022, LocalBitcoins suspended its operations allowing users to withdraw their coins.
FTX was a popular cryptocurrency exchange that was known for its innovative features. However, in 2022, FTX filed for bankruptcy due to liquidity crisis of its FTT token and did not have enough cash to meet its obligations.
QuadrigaCX was a Canadian cryptocurrency exchange that shut down in 2019 after its founder died, leaving customers without access to $190 million worth of cryptocurrency. The Netflix documentary "Trust No One: The Hunt for the Crypto King" explores the scandal and the efforts to recover the lost funds.
qTrade, a US-based cryptocurrency exchange that was operating for over 4 years, has announced its shutdown due to ongoing compliance and operational costs, and fewer projects aligning with its goals. It offered a great selection of coins, a simple interface, and low fees.
Cryptopia was a New Zealand-based cryptocurrency exchange that also suffered a hack. Cryptopia exchange was known for listing a large number of altcoins. Hackers managed to steal approximately $16 million worth of cryptocurrency from the exchange, which led to the company filing for bankruptcy.
BTC-e was a popular Russian cryptocurrency exchange that was shut down in 2017 by US authorities. The exchange was accused of facilitating money laundering.
Crex24 was a small cryptocurrency exchange that was known for offering wide variety of altcoins and giving away coins for free via faucets.
Crex24 announced its closure in 2023.
Exrates was another old cryptocurrency exchange that went down without much information and no announcement. The exchange had a relatively small user base and low liquidity.
Bter was a Chinese cryptocurrency exchange that also suffered from a hack back in 2015. It appears that later they started gateio.