Crypto exchange Cobinhood files for bankruptcy in alleged exit scam

Cobinhood, a well-known Taiwanese cryptocurrency exchange, allegedly pulled an exit scam after filing for bankruptcy.

The exchange's associated company DEXON Foundation, and its DXN token, raised $3.5 million last month.

Niche exchanges have long been hotspots for malicious trading and business practices, and it seems that Cobinhood is no exception.

The Taiwanese crypto exchange is known for its wide array of coins.

Cobinhood reportedly filed for bankruptcy today and appointed a liquidator tasked with laying off its staff.

While the company first mentioned layoffs months ago, it was always talked about in the context of "Increasing efficiency." It seems Cobinhood's restructuring plans turned out to be much more intense than the company led its investors to believe.

While companies in the crypto industry go bankrupt all the time, Cobinhood's timing forced many to believe that the exchange was facilitating an exit scam.

Company's founder Wei-Ning Huang commented on DEXON Telegram group saying that while the Taiwanese company is being restructured everything should be working as usual.

There is still no official information for when Cobinhood will be closing its doors, with the exchange still handling a daily trading volume of just under $1 million.

The company announced the news of bankruptcy last week but has maintained that it wouldn't impact Cobinhood's day-to-day operations.