Full Breakdown
CoinEx Announces Orderly Shutdown After Nine Years
By Drooid · · How we work
Background and Market Pressures
CoinEx, a Hong-Kong-based centralized cryptocurrency exchange launched in December 2017 by founder Haipo Yang, has cited a prolonged market downturn, shrinking trading volumes, reduced liquidity, and rising regulatory compliance costs as the primary reasons for ending operations. It also references a 2023 security breach that resulted in an estimated $70 million loss, but states that the 2026 closure is unrelated to that incident.
Timeline of the Wind-Down
- September 15, 2026 (occurred) – New user registrations, referral rewards, and several services are halted; futures contracts move to reduce-only mode.
- September 22, 2026 (scheduled) – All non-spot services, including futures, staking, lending, and on-chain deposits (except CET), are discontinued.
- September 29, 2026 (scheduled) – Spot trading ends; remaining CET balances are automatically repurchased at 0.005 USDT per token, and non-USDT assets are processed.
- December 22, 2026 (occurred) – Final withdrawal deadline; after this date the exchange ceases normal operations.
- August 22, 2028 (occurred) – Deadline for users to submit custody claims regarding unwithdrawn USDT.
Financial and Operational Data
- CoinEx reports a reserve ratio exceeding 100 percent, indicating that user assets are fully backed.
- The CET buyback price is set at 0.005 USDT per token, with no cap on the quantity eligible for repurchase.
- Unclaimed USDT after December 22, 2026 will be moved to independent custody and will incur a monthly custody fee equal to 5 percent of the original balance.
Official Statements from CoinEx Leadership
- He emphasized that the exchange’s assets remain fully backed and urged users to withdraw early to avoid network congestion.
- CoinEx reiterated that the shutdown is an “orderly wind-down” and that withdrawal services will remain available through the December 22, 2026 deadline. The company also clarified that its Wallet and Vault products will continue operating independently of the centralized exchange.
Verbatim Quotes
- “Volumes in crypto markets have been so anaemic that there's probably no money to be made and so operations aren't sustainable,” — Justin
Why the Shutdown Highlights Exchange Viability Issues
Analysts note that higher cryptocurrency prices do not automatically translate into sustainable exchange economics. The CoinEx case illustrates how smaller platforms, despite maintaining solvency, may find operating costs—particularly compliance staffing and licensing—unsustainable when trading activity contracts. Larger exchanges can spread fixed regulatory expenses across a broader user base, whereas niche exchanges face amplified risk when volumes decline.
What Users Must Do
- Withdraw assets before December 22, 2026 to avoid the custody fee and potential loss of access.
- Close leveraged positions before the relevant service cut-offs on September 15 and September 22 to retain control over settlement terms.
- Convert CET before the September 29 buyback deadline to receive USDT at the announced rate.
- Submit any USDT custody claims by August 22, 2028 via support@coinex.com.
The orderly closure of CoinEx underscores the broader consolidation trend within the crypto exchange sector, where market contraction and regulatory burdens are prompting smaller operators to exit despite maintaining asset reserves.