South Korea's Zeniex forced to close its doors following government crackdown

11 Nov, 2018
by Richard Allen
South Korea's Zeniex forced to close its doors following government crackdown

Seoul-based cryptocurrency exchange Zeniex will be forced to close its doors soon following a recent government crackdown on any unauthorized exchanges, Zeniex stated in a post dated November 22.

The exchange opened on May 8, 2018, with the intention of “promoting sound crypto finance.” However, due to “recent issues,” the exchange has decided that continuing operations “will be difficult.” As a result, all Zeniex services will be terminated on November 23, 2018.

The exchange urges all users to withdraw their crypto assets before the deadline. From November 22, users will no longer be able to check their crypto assets on the exchange.

In a separate announcement, Zeniex stated that their cryptocurrency fund, ZGX Crypto Fund No. 1 will also be terminated. The exchanges native token, ZGX, was intended to be listed on ioverseas exchanges in order to continue managing the fund. However, pressure from financial authorities have made this difficult.

“However, with recent developing issues we believe that ZXG Crypto fund No 1. is and will have difficulties to operate smoothly with such current pressure from the financial authorities.”

By November 12, Zeniex will return all funds invested in ZGX into the corresponding amount of Ethereum.

Recently, South Korean exchange PureBit was accused of an exit scam, stealing around $2.8 million worth of users’ ETH.

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