DX.Exchange, a Nasdaq-powered crypto startup that allows clients to purchase shares of major companies via a token-based platform, announced that it would temporarily cease operations as it seeks for a new partner or a buyer.
After nine months in operations, DX.Exchange revealed that it could no longer finance the required level of technology, security, and support on its own. On Monday, the board reached a consensus that operations would have to be shut down to make way for a new owner. The firm also informed users that the decision would be executed immediately. Open orders, deposits, and trading were all canceled at 12:00 GMT last November 3.
The announcement came brief and sudden; however, a spokesperson for the company confirmed that more information would be disclosed in the coming days. The board of directors thinks that the temporary shutdown is crucial in achieving success for the firm’s shareholders and staff. Furthermore, they believe a merger or an acquisition is needed to make DX.Exchange more competitive in the market.
In the meantime, the board assures all the clients that all of their funds are safe and intact and that they would be returned to respective owners accordingly.
How to claim the clients’ holdings
DX.Exchange also included in the announcement how users can withdraw their funds. The know-your-customer (KYC) procedures have been outlined, which involves the need to submit a face photo, email address, wallet address, and a valid government ID. As emphasized by the firm, fundholders must follow the procedures as soon as possible since the deadline has been set on November 15.