CoinEX, a Hong Kong-based crypto exchange, will wind down by the end of the year after operating for nine years since 2017.
According to the founder, Haipo Yang, all operations will cease by December 22, 2026, and he assured users that all funds are fully backed and will be available for withdrawal.
Yang acknowledged that competition, security, and compliance risks overwhelmed the exchange and were the main reason behind the wind-down.
I have come to accept a hard truth. CoinEx did not become one of the industry’s leading exchanges, and the security and compliance risks of running a crypto exchange have become increasingly difficult to contain.
The exchange’s revenue declined while the risks and responsibility increased; thus, running the platform was “no longer a rational choice.”
As a result, no new registrations will be allowed from the 15th of September. By the end of this month, all margin and spot trading will cease. Additionally, the exchange will buy back its native CET token at $0.005. The final withdrawal period will end by December.
However, the CoinEx Wallet and CoinEx Vault will operate independently and aren’t affected by the wind-down.
CoinEx ranked 64th in trust score, according to CoinGecko. It’s one of the tier-2 crypto exchanges that have been forced to shut down during this crypto winter. BitMEX, BitMart, and a few others have also stopped operations. But the exchange’s woes go beyond just a typical market downturn.
CoinEx: $70M hack and Iranian crypto flows
In 2023, the exchange suffered a $70M hack, but it managed to fully repay users a few days later.
However, the new cycle presented new challenges. Stiff competition from viral upstarts like Hyperliquid, while incumbents such as Binance were defending their turf. It meant second-tier exchanges were in for a tough ride.
While rivals tried to keep up with regulatory scrutiny, CoinEx hit another snag amid alleged funneling of Iranian crypto flows.
After Binance faced similar scrutiny and blacklisted addresses linked to the Iranian regime, CoinEx reportedly became a major external partner for Nobitex, a local exchange. About $4B in Iranian crypto flows were facilitated by CoinEx, according to a TRM Labs report in June 2026.
Although the platform denied knowledge of the relationship, it actively began blocking Iranian IP addresses. Three months later, CoinEx reported a wind-down with compliance risks as one of the major reasons.
If the regulatory pressure persists, market share could concentrate among a few top-tier exchanges.
That said, Binance founder Changpeng Zhao hailed the orderly wind-down as a sign of a maturing space.
Final Summary
- CoinEx to shut down by December, with the founder citing low revenue and rising security and compliance risks for the move.
- Binance founder CZ hailed the orderly wind-downs, which allow user withdrawals, as a shift from the past crypto winter.
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