Bitaigen Research These are the cryptocurrency exchanges that have gone bankrupt in recent years? From 2012 to 2026, a number of cryptocurrency exchanges collapsed due to misappropriation of funds, liquidity crises, regulatory sanctions, or hacking attacks. Below, the major failed platforms are organized by year, together with a brief analysis of the key factors that caused their downfall.
We have compiled closure cases of exchanges from 2012 to 2026, dissecting core factors such as fund misappropriation, liquidity crises, regulatory shocks, and hacking attacks. By systematically summarizing failure pathways, readers can identify potential risks and improve defensive awareness. A comparison between custodial and decentralized platforms will follow. For more industry lessons and preventive tips, keep reading.
Why Do Cryptocurrency Exchanges Fail?
The core factors that lead to cryptocurrency exchange bankruptcies include:
- Lack of transparency: Financial information is not disclosed, losses are hidden or valuations are exaggerated, which can trigger panic withdrawals from users.
- Liquidity crisis: Excessive leverage, poor risk management, or a market downturn can break the funding chain, forcing a suspension of withdrawals.
- Fraudulent behavior: Founders misappropriate user assets or manipulate markets for profit, constituting outright scams.
- Hacking attacks: Weak security allows hackers to exploit vulnerabilities and steal large amounts of digital assets.
- Regulatory environment changes: Unclear or tightening regulations that are not addressed in time can result in fines or even forced shutdowns.
- Contagion effect: The chain reaction triggered by events such as the FTX collapse can cause runs and liquidity stress on other platforms.
Which Exchanges Are Considered the Safest?
Non‑custodial platforms and decentralized exchanges (DEXes) are generally viewed as safer options.
- Non‑custodial platforms (e.g., Hodl Hodl, Peach Bitcoin, Relai, Bull Bitcoin) do not hold users’ assets; trades are executed through self‑custodied wallets, giving users more control over risk.
- Decentralized exchanges match orders peer‑to‑peer, eliminating a single point of failure. Although they may be less user‑friendly for beginners, they are more resilient when a platform is shut down or experiences outages.
How Many Cryptocurrency Exchanges Have Gone Bust?
Because the industry evolves rapidly and some platform closures lack clear explanations, an exact figure is unavailable. However, multiple studies indicate:
- About 42 % of failed exchanges vanished without any public explanation.
- About 9 % of the failures were later confirmed to have been outright scams from the start.
These numbers underscore the importance of conducting thorough due‑diligence when selecting a trading venue.
The following list is based on publicly reported cases and is ordered by year. Note that the roster may not be exhaustive as the market continues to change.
Exchanges That Closed in 2024
BitForex
In February 2024, Hong‑Kong‑based BitForex abruptly went offline; both its website and trading client were taken down. Although no formal closure announcement was made, roughly US $57 million was withdrawn shortly before the interruption, raising concerns of a potential fraud. Hong‑Kong regulators recently ordered unlicensed platforms to cease operations by May 31 2024, further clouding BitForex’s outlook.
Exchanges That Closed in 2023
| Exchange | Key Event |
|---|---|
| **Bittrex** | Filed for bankruptcy in May 2023 after the U.S. SEC alleged it was operating an unregistered securities exchange; halted U.S. operations on April 30 and fully shut down global services on December 4. |
| **Bitzlato** | Ceased operations in 2023; former CEO Anatoly Legkodymov pleaded guilty to illegal business conduct and agreed to close the platform, with approximately **US $23 million** of crypto assets seized. |
| **Rock Trading** | Malta‑headquartered platform halted in February 2023 due to insufficient liquidity; a court‑ordered liquidation froze all client funds. |
| **BKEX** | On May 29, withdrawals were suspended amid alleged money‑laundering investigations; the official website became inaccessible. |
| **Patricia** | Nigerian platform began blocking withdrawals in May; user assets were forcibly converted into the PTK token with no clear redemption path. |
| **Genesis Global Trading** | Filed Chapter 11 bankruptcy in January 2023, citing the 2022 market collapse and fallout from the FTX failure, which exposed inadequate risk management. |
Exchanges That Closed in 2022
- FTX: Once a market leader, it went bankrupt after lending roughly US $10 billion of customer deposits to its affiliate Alameda Research, resulting in over US $1 billion of missing assets.
- BlockFi: Planned acquisition by FTX for about US $240 million fell through after FTX’s collapse; the platform froze all withdrawals in November 2022.
- Liquid Global: Suspended deposits, withdrawals, and trading in November 2022 as a downstream effect of the FTX bankruptcy.
- CoinFLEX: Restricted withdrawals in June 2022 due to a financial crisis; later sued and announced closure in October 2023.
- Celsius Network: Declared bankruptcy after lending roughly US $8 billion and managing close to US $12 billion in assets; the status of asset restitution remains unclear.
Exchanges That Closed in 2021
- Todex (Turkey) went offline in 2021; the CEO disappeared, leading to the loss of approximately TRY 356 million in assets.
- Einstein (Canada) was founded in 2017 and shut down in October 2019 due to severe asset shortfalls.
Exchanges That Closed in 2020
- Cobinhood: Known for “zero‑fee trading,” it was forced to close in 2020 amid a wave of negative rumors and suspected exit‑scam behavior.
Exchanges That Closed in 2019
| Exchange | Main Reason |
|---|---|
| **QuadrigaCX** | After the founder’s unexpected death, about **US $190 million** vanished and the case was later classified as a Ponzi scheme. |
| **Cryptopia** | Suffered a hack in January 2019 that stole roughly **15 %** of customer assets, leading to bankruptcy liquidation. |
| **BitGrail** | Revealed in February 2018 that **US $170 million** worth of Nano tokens were stolen; the court declared bankruptcy in 2021. |
Exchanges That Closed in 2017
- Youbit (South Korea) filed for bankruptcy in December 2017 after two successive attacks; about 75 % of its assets remained accessible.
- BTC‑e: Operated since 2011; shut down in 2017 after U.S. law‑enforcement seized the platform and charged it with facilitating illicit activity.
2016
- Cryptsy: Disappeared in the same year after being heavily involved in trading large numbers of “trash” tokens.
2014
- Mt. Gox: Once handled roughly 70 % of global Bitcoin trading; forced to shut down in January 2014 after a security breach, resulting in the loss of about 850,000 BTC.
2013
- BitFloor: In September 2012, a hack stole 24,000 BTC; the associated bank accounts were later closed and the exchange finally ceased operations in 2023.
2012
- Bitcoinica: Offered Bitcoin‑USD leveraged CFDs; a hack in 2012 that stole 43,000 BTC broke its funding chain, leading to its eventual collapse.
Recommended Secure and Stable Exchanges
The platforms listed below enjoy relatively high compliance and security reputations within the industry and are provided for reference only.
1. Binance
- A leading global digital‑asset exchange covering over 190 countries and regions.
- Referral code: `B2345` (receive a 20 % fee rebate on registration).
- Important for U.S. residents: Use Binance.US instead of the global site.
- Official Binance website | App download
2. HTX (formerly Huobi)
- Offers public‑chain services, digital‑asset trading, wallet, and security solutions.
- Referral code: `b6yq8223` (permanent 20 % fee rebate).
- Official HTX website | App download
3. OKX
- Provides multi‑chain non‑custodial wallets, NFT marketplace, DEX, and a full ecosystem of services.
- Referral code: `B2345` (permanent 20 % fee rebate).
- Official OKX website | App download
4. Gate.io
- Founded in 2013, combines centralized and decentralized security mechanisms.
- Referral code: `VLIWUGTFAA` (permanent 20 % fee rebate).
- Gate.io website | App download
5. Bitget
- Holds multiple financial licenses worldwide, supports 500+ trading pairs and diversified wealth‑management products.
- Referral code: `vxje` (permanent 20 % fee rebate).
- Bitget website | App download
6. Bybit
- A comprehensive platform for beginners and professionals, offering spot, derivatives, and copy‑trading features.
- Referral code: `B2345` (permanent 20 % fee rebate).
- Bybit website | App download
Global Spot‑Exchange Ranking (Updated 2026‑03‑11)
| Rank | Exchange | 24h Volume (USD) | Avg. Liquidity | Weekly Visits | Supported Coins | Fiat Options |
|---|---|---|---|---|---|---|
| 1 | **Binance** | $10,568,591,384 | 937,902,855 | 208,163 | 131 | ARS, AUD, BRL +86 |
| 2 | **Coinbase Exchange** | $2,094,704,989 | 792,108,808 | 503,386 | 3 | USD, AED, ARS +61 |
| 3 | **Upbit** | $1,193,127,570 | 536,2,072,132 | 701,313 | 1 | KRW |
| … | … | … | … | … | … | … |
*(The table shows only the top entries; refer to the original source for the complete list.)*
Global Derivatives‑Exchange Ranking (Updated 2026‑03‑11)
| Rank | Exchange | Open Interest (USD) | 24h Volume (USD) | Maker Fee | Taker Fee | Number of Markets |
|---|---|---|---|---|---|---|
| 1 | **Binance** | $20,806,234,750 | $59,225,855,415 | 0.02 % | 0.04 % | 638 |
| 2 | **OKX** | $5,767,245,586 | $25,578,714,259 | 0.02 % | 0.05 % | 285 |
| 3 | **Gate** | $9,717,684,308 | $18,659,796,607 | 0.015 % | 0.05 % | 632 |
| … | … | … | … | … | … | … |
The tables above constitute the Bitaigen (比特根) editorial team’s compiled list of historically failed cryptocurrency exchanges and a snapshot of currently reputable platforms. Use this information to stay vigilant and allocate digital assets prudently.
Tax note: Cryptocurrency gains may be subject to taxation in your jurisdiction. Always consult a tax professional or local regulations to ensure compliance.
Related Reading
- Top Crypto Trading Apps 2026: Security, Fees & Beginner Tips
- Top 10 Crypto Trading Platforms 2026: Rankings & Tips
- Ethereum (ETH) Overview: History, Use Cases & Vitalik Buterin
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