The parent company Bitcoin Exchange Cobinhood declared bankruptcy

Cobbingham Digital Finance Co. Ltd., the parent company of the Cobinhood cryptocurrency exchange, has declared bankruptcy and liquidation. About this portal Cryptoslate .

A temporary manager has been appointed to liquidate the company. The final results of the bankruptcy procedure will determine the fate of Cobinhood. Indirectly, this may also affect the company associated with the stock exchange Dexon Foundation.

It is noteworthy that in April 2019, the Dexon Foundation raised $ 3.5 million to sell its DXN token. The other day, the token was unfrozen and went on sale, while the ICO investors did not get access to the purchased coins. After the announcement of bankruptcy, the price of DXN slipped by more than 85%. Later there was a rebound of the course, but the token could not recover.

The cost of the native token Cobinhood (COB), in turn, fell by 50%.

In the meantime, the crypto community regarded the site’s actions as fraud.

Classy exit scam from @COBINHOOD & @dexonfoundation (same company). After raising $ 3M just last month (!!!), they unlocked all tokens, dumped on the market (!!!) Remember these people $ DXN #Cobinhood $ COB https://t.co/xUGJiUQBrr pic.twitter.com/ZUPyP2Bhg7

– TSS (@SandorReport) May 20, 2019

“Classic exit scam from the Cobinhood exchange. Having received $ 3 million last month (!!!), they unlocked all the tokens, brought them to the market (!!!) and announced that they were appointing a liquidator. Remember these people, ”wrote a Twitter user under the nickname SandorReport.

Dexon founder Wei-Ning Huang, in the company's official telegram channel, said that Cobinhood is undergoing a restructuring process, but this should not affect the operation of the site. He also stated that the company’s management was not involved in the DXN token dump.

“We used separate nodes owned by the fund to reduce operating costs. We do not plan to get rid of the DXN owned by the fund, ”he stressed.

At the same time, Juan did not comment on the bankruptcy proceedings.

Earlier, Cobinhood Exchange reported staff reductions "in order to increase efficiency."

At the time of writing, the website of the exchange is fully operational. Daily trading volume at the site was $ 1.3 million.

Recall that in April, the Canadian bitcoin exchange QuadrigaCX launched a bankruptcy procedure.

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