CoinEX is a Cryptocurrency exchange, where you can trade Bitcoins for a variety of other Cryptocurrencies. It appears that when CoinEx started it was legitimate, but over time more and more reports began to appear of coin withdrawals not working, and that there was no customer service at all.
In early March CoinEx was supposedly hacked, the owner of CoinEx says all coins were stolen. He has shown no proof for this though, and has been seen in the past with other Cryptocurrency exchanges, saying all the coins were stolen is an easy way to get away with fraud. The owner of CoinEx was selling large amounts of Bitcoins at this time on localbitcoins, but asserts that the Bitcoins were from his own mining operation. Unless he has some sort of extremely powerful mining rig, that is unlikely. It is uncertain how many coins were stolen, but it was at least 500 Bitcoin worth, if not up to 1000. This amounts to hundreds of thousands of dollars in losses for CoinEx customers.
The site was shut down for a couple weeks, but then reopened. CoinEx announced that they ‘found’ 50% of the missing funds. It is important to note that few have received a refund following this statement. When the site re-opened, coin prices were much lower than on other exchanges, enticing people to make deposits. However, there was still no way to withdraw coins, so everyone who has made a deposit since the exchange has re-opened has been robbed. There is no warning about this on CoinEx, making this highly illegal. There is no response from customer service to any of the customer’s complaints. This continues even today, people are depositing coins into CoinEx, and aren’t able to take them out. The CoinEx chatbox is filled with people panicking about their coins being stolen.
Additionally, CoinEx sold over 80,000 shares, each share was supposed to pay out a percentage of CoinEx’s earnings. The shares started at 0.04 Bitcoin per share, but after CoinEx closed down they dropped to only 0.005 Bitcoin per share, a 90% decline in value. Anyone who invested in CoinEx basically lost their entire investment, no one is willing to buy the shares anymore. This amounts to over 3200 Bitcoin stolen from investors, which is about $1.5 million currently.
Thus, CoinEx is an exchange that has collapsed, but continues to steal coins deposited by customers, and entices new customers with artificially low prices. Investors and customers have lost well over $1 million to CoinEx. Clearly CoinEx needs to be avoided, spread the word to all of your friends involved with Cryptocurrency.