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Isreali Crypto exchanges closes amid controversy

Isreali Crypto exchanges closes amid controversy
By We Play Coins
Added on Nov 25, 2019

Isreali Crypto exchanges closes amid connection to binary options according to a report by The Times of Israel. Israeli Cryptocurrency exchange DX.Exchange is going bankrupt after a petition from employees and others to close up operations. The company has failed to pay bills and its employees for a few months now. Several Israeli suppliers have sued the company in the last six months for allegedly failing to pay its bills. These companies are White Hat Ltd., which provided cybersecurity services to DX.Exchange, and Bee2See Dotan B.S. Solutions, which provided targeted marketing of potential customers using IBM’s Watson system. Malam Team, one of Israel’s largest IT companies, has also sued CX Technologies for allegedly failing to pay for servers the company supplied.

DX.Exchange burst onto the global cryptocurrency stage in January 2019 with glowing media coverage that touted the company’s affiliation with NASDAQ and Bloomberg News.

For instance, TheStreet.com, a widely read financial news website, described DX.Exchange in January 2019 as a “partner” of NASDAQ and proclaimed that the company was set to “bridge the gap between equity and crypto markets.”

“The financial industry itself now feels isolated from the great things happening in crypto,” the article asserted. “Seeing these trends play out, some of the biggest names in traditional finance such as Bloomberg, NASDAQ and MPS Marketplace Securities have put their heads together to offer a solution.”

The company’s touted partnership with Bloomberg appears to have been more substantial. In December 2018, Bloomberg sponsored a “Crypto Summit” in London, for which the news organization said it brought in “subject matter experts and leading industry players to discuss crypto’s future in 2019 and what needs to be done to pique mainstream investor interest in this global disruptive phenomenon.”

At the conference, DX.Exchange’s CEO, Daniel Skowronski, delivered the opening remarks. “The SEC is really coming down on, you know, whether it’s an ICO, whether it’s a security token,” he said, referring to the US Securities and Exchange Commission’s scrutiny of cryptocurrency ventures. “I think there are so many subpoenas that have been sent out. And the reason the SEC is doing that is because they’re out there to protect US customers. And I think with us being here it Europe, it’s really surprising to me how European companies or non-U.S. companies are really scared of the SEC. The only thing you have to worry about with the SEC is if you took US customers,” he said.

Isreali Crypto exchanges closes amid connection to binary options as most of the employees hailed from a now-banned binary options trading technique company Spotoption.

Official Announcement

In a November 3 blog post, DX.Exchange announced that it was shutting down, unless it could find another company to buy it or merge with it.

“The costs of providing the required level of security, support, and technology is not economically feasible on our own,” the company announced.

On November 4, the court-appointed trustee for CX Technologies, attorney David Forer, wrote in a court filing, “In a meeting I held with the company’s controlling shareholder, Mr. Pinhas Patarkazishvili, Mr. Moshe Avrahami and their lawyer, I was told that the company has reached the end of the road due to purported business failure. I was told that the company has no available sources of money and that it is even in overdraft of NIS 5,000, that there are no debts from customers to be collected and that the company has no assets it owns, that even the office equipment is not owned by the company but was leased from another company owned by [Patarkazishvili].”