The Zeniex exchange launched in South Korea less than five months ago and have just announced that they will be closing all of their operations.
It was in May that the exchange opened its doors. Now they are planning on closing by the 23rd of November. The main reason being attributed to this closure is issues they are having with the ZXG token.
The exchange made a statement in which they outlined some of these issues saying, “… with recent issues regarding ZXG, we have gone through great deliberation both internally and externally. As a result, we have come to the conclusion that continuing to operate such service will be difficult.”
Trading for the ZXG token stopped on the 9th of November and those people currently holding this token are being compensated through Ethereum. This process began on the 12th of November. For all of the other crypto assets that users may have on the platform, they need to transfer them before the exchange closes.
This company was a combination of teams from South Korea and China. They are also responsible for the first crypto fund in South Korea called the ZXG Crypto Fund 1. This is the reason for a lot of the problems, it seems.
It was towards the end of October that the Financial Supervisory Service in South Korea gave a warning to investors about digital currency funds of this manner.
This fund had not been registered by the relevant authorities and the funds had not been audited by the regulator. This violates the capital markets laws in the country, as all funds have to be registered. Securities reports are needed for those funds which general investors have contributed.