Media: DX.Exchange, which used Nasdaq technology, prepares for bankruptcy

DX.Exchange, a crypto platform that announced the suspension of trading earlier this month, is allegedly preparing to initiate bankruptcy proceedings.

According to the Times of Israel, 78 former and current employees of the exchange’s parent company, CX Technologies Ltd. filed a petition with an Israeli court asking to liquidate the legal entity.

DX.Exchange, famous for using Nasdaq order matching and monitoring technologies in operations, announced a few weeks ago that it will try to find a buyer for its core business..

“It is not economically feasible for us to bear the costs of providing the required level of security, support and technology on our own,” the company said at the time..

In the petition, the exchange employees write that they have not received salaries since September or October 2019, and there is no money in the company’s bank accounts. DX.Exchange owner Pinkhas Patarkatsishvili allegedly agreed with these arguments and would not object to bankruptcy proceedings.

In addition, the document states that CX Technologies is the successor company to SpotOption, which has come to the attention of the FBI due to suspicions of links to a multibillion-dollar binary options fraud. According to the publication, most of CX Technologies employees used to work at SpotOption.

In addition to the employee petition, several Israeli companies have filed claims against CX Technologies over the past six months, which have not received payment for the services provided. These included cybersecurity service provider White Hat Ltd., marketing service provider Bee2See Dotan B.S. Solutions and Exchange Server Provider Malam Team.

DX.Exchange launched earlier this year and, in addition to exchanging cryptocurrencies, provided an opportunity to trade shares of stock companies.

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