Bitaigen Research 
In recent years, several exchanges have shut down due to security breaches, poor management, or regulatory problems. When selecting an exchange, you should pay attention to security, compliance, fees, available assets, and user experience. Mainstream platforms that are both secure and compliant tend to be more reliable.
We have compiled a list of exchanges that have gone bankrupt in recent years because of security or regulatory issues. From the perspectives of asset safety, regulatory compliance, fee structure, and user experience, we provide a practical guide for picking a trustworthy platform, helping readers make steadier decisions amid a crowded market.
Which Well‑Known Exchanges Have Already Closed?
As the cryptocurrency market matures, the number of exchanges has exploded. CoinMarketCap reports that there are currently 670 cryptocurrency exchanges operating worldwide. At the same time, many once‑active exchanges have declared bankruptcy, with notable examples including MT.Gox, FCoin, and FTX.
- MT.Gox (Closed: 2014)
- Founded in July 2010 by Jed McCaleb; ownership transferred to Mark Karpeles in March 2011.
- From 2011 to 2013 it became the world’s largest BTC exchange.
- In 2014 a hack resulted in the loss of 850,000 BTC (about $473 million at the time), after which the exchange filed for bankruptcy and shut down.
- Yes‑BTC (Closed: 2015)
- Shut its website in February 2015 after a theft and a run on the exchange; chairman He Zhaoyi disappeared.
- Police investigations revealed that the firm owed underground lenders more than ¥6 million and had misappropriated over 1,600 BTC belonging to users.
- FCoin (Closed: 2020)
- Launched in May 2018 by Zhang Jian, introducing a “hold‑coins‑and‑receive‑dividends” model; its first month’s trading volume topped the global rankings.
- Unsustainable high dividends and a crash of its native token FT made the model impossible to maintain; the founder fled abroad at the end of 2018, and in 2020 the platform announced that it could not redeem between 7,000 and 13,000 BTC owed to users.
- FTX (Closed: 2022)
- Founded in 2019 by Sam Bankman‑Fried (SBF); by 2022 it was the world’s second‑largest exchange.
- In November 2022, linked firm Alameda Research disclosed liabilities of roughly $8 billion and poor liquidity, triggering a user run that led to bankruptcy within two weeks.
- A multi‑round creditor repayment plan started in 2025, with victims slated to receive full cash compensation based on the cryptocurrency prices at the time of bankruptcy.
- Bittrex (Closed: 2023)
- Established in 2014 and once praised for its security; its market share reached almost 23 % in 2018.
- In April 2023 the U.S. SEC charged the platform with illegal operations, after which it filed for Chapter 11 protection. Over 100,000 creditors are listed.
- Other well‑known exchanges that have ceased operations include Bitfloor (2013), 796 (2015), Upbit (2019), DrogonEX (2019), ZB (2022), AEX (2022), HOO (2022), JPEX (2023) and many more.
What Are the Main Reasons Exchanges Fail?
The causes of failure can be grouped into internal factors and external factors.
Internal Factors
| Factor | Representative Cases | Core Issue |
|---|---|---|
| **Security Vulnerabilities** | MT.Gox, Binance, OKX, etc. | Hacks that result in stolen assets |
| **Improper Internal Operations** | FTX, Yes‑BTC | Misuse of user funds for high‑risk investments |
| **Poor Management** | FCoin, QuadrigaCX | Unsustainable dividend schemes, loss of private keys leading to unrecoverable assets |
External Factors
| Factor | Representative Cases | Core Issue |
|---|---|---|
| **Regulatory Pressure** | AEX, JPEX, Upbit | Operating without proper licences or violating local financial regulations |
| **Market Volatility** | Bittrex, various small platforms | Sharp drop in trading volume during bear markets, insufficient revenue to sustain operations |
How to Choose a Cryptocurrency Exchange?
Different investors have different priorities. When evaluating an exchange, focus on the following dimensions:
- Security
- Verify whether the platform holds industry‑recognised security audit reports, the proportion of funds kept in cold storage, and its history of attacks.
- Check for a valid licence and a risk‑reserve fund; you can often confirm these details with the issuing regulator.
- Fees
- After confirming security, compare maker/taker fee rates. If two platforms have comparable security levels, choose the one with lower fees.
- Number of Supported Assets
- Major coins (BTC, ETH, XRP, etc.) are available on almost all exchanges. If you need to trade low‑market‑cap tokens, you may have to turn to tier‑2 or tier‑3 platforms.
- User Experience
- Look at order execution speed, interface friendliness, charting tools (e.g., TradingView integration), and whether the exchange offers API access, bot‑trading features, or copy‑trading services.
Which Exchanges Are Worth Considering?
The following platforms generally perform well in terms of security, compliance, liquidity, and feature set. They are listed for reference only; always conduct your own due diligence.
Binance (global)
- Links: Official Registration | Official Download
- Trading Fees: Maker 0.02 %, Taker 0.05 % (discounts available when holding BNB)
- KYC: Required
- Key Features: Futures, options, bot trading, copy trading, staking, professional‑grade interface
- Note for U.S. Residents: American users must use Binance.US, which operates under a separate licence and offers a more limited product suite.
OKX
- Links: Official Registration | Official Download
- Trading Fees: Maker 0.02 %, Taker 0.05 %
- KYC: Required
- Key Features: Integrated TradingView, DeFi wallet, trading bots, copy trading, yield products
Bybit
- Links: Official Registration | Official Download
- Trading Fees: Maker 0.01 %, Taker 0.06 %
- KYC: Not mandatory for basic accounts
- Highlights: TradingView integration, copy trading, bots, inverse futures and USDT‑settled contracts
Bitget
- Links: Official Registration | Official Download
- Trading Fees: Maker 0.02 %, Taker 0.06 %
- KYC: Required depending on withdrawal limits
- Key Features: Advanced copy‑trading, multiple stable‑coin futures, Vietnamese language interface
BingX
- Links: Not available (as of writing)
- Trading Fees: Maker 0.045 %, Taker 0.075 %
- KYC: Lenient for small‑value trades
- Key Features: Social trading, KOL signals, copy trading, futures settlement, bots
KuCoin
- Links: Not available (as of writing)
- Trading Fees: Maker 0.02 %, Taker 0.06 %
- KYC: Not required for most activities
- Highlights: Large selection of altcoins and meme‑coin futures, bots, copy trading, staking yields
MEXC
- Links: Not available (as of writing)
- Trading Fees: Maker 0.00 %, Taker 0.02 %
- KYC: Not required
- Highlights: Over 1,000 futures pairs, up to 200× leverage, bots, airdrop futures
Gate.io
- Links: Official registration / Official download (links omitted for brevity)
- Trading Fees: Maker 0.015 %, Taker 0.05 %
- KYC: Required depending on withdrawal limits
- Key Features: Over 1,000 tokens, futures settlement, lending, spot trading, bots
LBank
- Links: Not available (as of writing)
- Trading Fees: Maker 0.02 %, Taker 0.06 %
- KYC: Not required
- Highlights: Memecoin futures, promotional campaigns, trading bots
CoinW
- Links: Not available (as of writing)
- Trading Fees: Maker 0.00 %, Taker 0.03 %
- KYC: No
- Highlights: Copy trading, basic futures, onboarding promotions
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The above overview summarizes recent exchange failures, the primary causes behind those failures, and the key points to consider when selecting a safe and reliable platform. For more in‑depth exchange reviews, search for historical articles from Bitaigen or continue browsing related sections on this site.
Disclaimer: Cryptocurrency transactions may be subject to taxation in your jurisdiction. Always consult a tax professional regarding the tax treatment of crypto gains.
Happy and secure trading!
Related Reading
- Best Low‑Barrier, High‑Security Crypto Exchanges for Beginners in 2026
- Top 20 No‑KYC Crypto Exchanges in 2025 – Trade Anonymously
- Choosing the Safest Crypto Exchange in 2026: Fees & Security
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