It was recently reported that digital assets trading platform DX Exchange ceased operations and was looking for a way to exit the market via a merger or a sale. New details from Israel show that the exchange reportedly didn’t even have the cash flow to pay its suppliers and employees.
Also Read: Crypto Winter Claims Another Victim as DX Exchange Closes
New Details Emerge on DX Exchange
Estonia-registered DX Exchange announced on November 3 that the platform was not allowing any more deposits from clients, trading was suspended and all open orders had been canceled. This was said to be done until a new buyer can be found for the company or it can merge with another exchange to reduce the high cost of running the business. “The cost of providing the required level of security, support and technology is not economically feasible on our own,” the company explained at the time.
New media reports reveal just how bad the financial situation was for the trading venue, not being able to pay either its staff or suppliers. DX Exchange reportedly had dozens of software developers in an R&D center in Israel, employed via the local company CX Technologies Ltd. According to the new media reports, 78 former and current employees petitioned the Israeli court last month claiming that they had not received their wages since September 2019, with some of them not getting the benefits they were due for over two months.
“In addition to the petition by employees, 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
