The exchange has officially closed and filed for bankruptcy!!!
Latest information: The cryptocurrency exchange XeggeX officially announced its closure and bankruptcy filing on June 27, 2025. The platform has been in operational crisis since suffering a hacker attack in February 2025, ultimately leading to bankruptcy liquidation due to a broken capital chain.
Bankruptcy process:
February 2025: The platform suffered a severe hacker attack, with the CEO's Telegram account hacked, causing user panic. The backend database was breached, resulting in partial data loss, user accounts were locked, and there were abnormal balance displays.
February - June 2025: XeggeX repeatedly delayed the restoration of trading and withdrawal functions under the guise of 'maintenance,' but was ultimately unable to resume normal operations, leading to a complete collapse of user trust.
June 27, 2025: The platform announced confirmation of closure and bankruptcy filing due to losses from the hacker attack and failure to recover.
Reasons for bankruptcy:
Direct impact of hacker attack: The attack led to a broken capital chain and damage to user data, becoming the tipping point for the platform.
Liquidity crisis: Delayed recovery triggered a collective run on the platform by users, accelerating capital loss.
Lack of regulatory risk: As a small exchange, XeggeX lacked transparency and regulatory protection, with weak risk resistance.
Friendly reminder: Do not leave large amounts of funds in small exchanges for long periods; small exchanges generally have weak risk control and resistance capabilities. Once an issue arises, recovering funds is extremely difficult. Regardless of how 'hot' a platform is, its transparency and regulatory background matter. Exchanges without public audits, custodianship, or real regulatory qualifications are high risk. Diversify assets; long-term assets should be stored in cold wallets, which is the safest practice. Exchanges should only be used as circulation tools, not as 'piggy banks'.
