One of the Cryptocurrency space’s most respected exchange has announced that it would be shutting down permanently.
Cobinhood exchange in a letter to its community stated the difficult decision to shutdown came out to be its utmost regret.
Apologizing to its community, Cobinhood Exchange said it is already auditing all accounts’ balances and migrating all data from Jan 10 to Feb 9 in 2020. The exchange hopes it re-opens on Feb 10, 2020 during which refunds process would be communicated to all users on Feb 10, 2020.
Cobinhood Exchange urged users to not make any deposit during this period as it may result in permanent loss of funds.
Last year, rumors were rife that those behind Cobinhood Exchange were pulling an exit scam. The CEO founder of Cobinhood, Popo Chen, responded to this allegation, claiming there was nothing like that.
At that time, he said COBINHOOD Exchange and DEXON Foundation were not thinking of pulling out of the cryptocurrency space.
During this period, Cobinhood was facing several legal battles and up till now, the exchange refrained from commenting on the battles. Popo said Conbinhood did not go bankrupt and not pulling an exit scam.
He said: “This is no exit scam. The company didn’t file bankruptcy either.”
Behind the Issue
The issues came shortly after the exchange and Dexon Foundation raised $3 Million USD from investors. Observers alleged them of unlocking all of DEXON’s Coin (DXN) to dump onto the market, resulting in the price of the digital asset falling.
Deflating the allegation, Popo said DEXON Foundation and COBINHOOD Exchange were at that time functional, but the exchange went “through a series of unfortunate incidents, causing COBINHOOD Ltd. announced its suspension on Monday, May 20th”.
The mother firm of the exchange, Blocktopia, Inc. then formed a smaller team, taking over the daily operations of Cobinhood. Also, Popo said there was no dump of DXN tokens at that period.
Explaining what happened, Popo said on April 26th, he was accused of financial misconduct during a board meeting of Blocktopia. However, the accuser, Popo claimed was misled by false information.
On this allegation, Popo said he accepted to be legally investigated, resulting in the firm withdrawing Popo’s access to the company’s email, slack, telegram and office badge. When the issue became widespread, Popo agreed that the matter be left to the court.
Due to the dispute, Cobinhood announced to lay off its employee, causing Blocktopia to form a smaller that was operating DEXON Foundation and Cobinhood Exchange.