Singapore-based cryptocurrency exchange DragonEx has revealed it’s weighing shutting down its operations amid an ongoing “crisis of trust” the centralized exchange is facing over OKEx’s recent withdrawal freeze.
According to an official announcement, DragonEx froze deposits and withdrawals after the recent OKEx withdrawal freeze created the trust crisis, which saw exchange users start withdrawing their funds from the platform en masse, effectively deteriorating the platform’s service.
The Singapore-based exchange is now reportedly working on a restructuring plan to resume deposits and withdrawals on its platform. The exchange’s representatives revealed that if they do not manage to successfully recognize by November 2, the trading platform will shut down.
The exchange also mentioned the large-scale hack it suffered in March 2019, when it saw hackers steal over $7 million from its wallets across several blockchains. The exchange pointed out that after working hard to recover the funds, it still hasn’t managed to do so.
As CryptoGlobe reported, infamous hacking collective Lazarus Group, widely believed to work for the North Korean government, is believed to have been behind the hack of DragonEx. Lazarus reportedly used advanced tactics to hack the cryptocurrency exchange.
It reportedly created a fake company and a fake cryptocurrency trading bot to phish DragonEx employees and gain access to the cryptocurrency. The group pitched the trading bot to the exchange, prompting them to download malware. A report published at the time read:
“While the DragonEx hack was relatively small, it was notable for the lengths Lazarus Group went in order to infiltrate the exchange’s systems in a sophisticated phishing attack.”
News of DragonEx’s restructuring plan and potential shutdown comes after prominent crypto exchange OKEx revealed it was suspending withdrawals as one of its private keys holders was “out of touch” with the exchange while cooperating with authorities in an investigation.
Featured image via Unsplash.
