CoinEx Closes After 9 Years; CZ Praises Orderly Shutdown vs QuadrigaCX
In brief
- CoinEx closes after nine years, citing market decline and regulatory costs
- Phased shutdown runs September 15–December 22; spot trading ends September 29
- Exchange maintains 100%+ asset reserves, enabling full user fund withdrawals
- CZ distinguishes orderly closure from QuadrigaCX-style collapses and insolvency events
- Remaining USDT enters independent custody post-December 22 with monthly fees
The Shutdown Timeline
CoinEx's closure stages start September 15 and end December 22. On the opening date, futures moved into reduce-only mode. On September 22, non-spot services will cease, and on September 29, spot trading will end. After that window closes, users have until December 22 to withdraw remaining balances.
The exchange outlined its asset management plan. CoinEx maintains an asset reserve ratio above 100%, with user assets fully backed and accessible for withdrawal. The exchange will repurchase any remaining CET balances at 0.005 USDT per token. After December 22, USDT remaining on the platform will go into independent custody, where CoinEx claims a monthly custody fee equal to five percent of the initial balance.
Why It Matters: Insolvency vs. Business Failure
CoinEx cited declining cryptocurrency market conditions, declining industry trading volume and liquidity, growing regulatory requirements, and increasingly onerous compliance costs as reasons for closure. The distinction Zhao drew is crucial for the industry. Exchanges can fail economically without becoming insolvent—CoinEx's closure reflects market realities and regulatory strain, not a shortfall in customer assets.
This contrasts sharply with past cycles. QuadrigaCX became synonymous with catastrophic exchange failure after its founder passed away and clients were unable to access their funds. Zhao's framing emphasizes that recent wind-downs, including CoinEx's, have allowed users to withdraw assets—a marked departure from those earlier collapses. The orderly process signals maturation in how the industry handles exchange exits.
Frequently asked questions
Why is CoinEx shutting down?
CoinEx cited declining cryptocurrency market conditions, reduced trading volume and liquidity, growing regulatory requirements, and rising compliance costs. These pressures made the exchange economically unsustainable despite maintaining full asset reserves.
Will users be able to withdraw their funds?
Yes. CoinEx maintains an asset reserve ratio above 100%, ensuring all user assets are fully backed and accessible for withdrawal. The shutdown runs through December 22, giving users time to exit positions.
How is CoinEx's shutdown different from QuadrigaCX?
QuadrigaCX collapsed catastrophically after its founder died, leaving users unable to access funds. CoinEx's orderly closure allows users to withdraw assets throughout a phased wind-down. The distinction reflects the difference between insolvency and business failure.
