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DX.Exchange employees file bankruptcy petition

By Charlotte Ricca

Petition reveals links to binary options

The company behind DX.Exchange has entered bankruptcy after its employees filed a petition to dissolve the exchange.

As reported in The Times of Israel, 78 former and current employees have taken action, amid claims that DX.Exchange has no money left in its bank. According to the complainants, many were not been paid in September or October 2019, while others haven’t received benefits for even longer.

DX.Exchange announced it had “temporarily" closed last month, while it pursued a merger, explaining the costs of providing the “required level of security, support, and technology is not economically feasible on our own”. However, the bankruptcy petition has put paid to these plans.

In addition to the lack of funds, there was also confusion over who exactly owns the cryptocurrency exchange. DX.Exchange’s website stated it was owned by a company registered in Estonia. However, the petition claims that it was operated by CX Technologies, which is a successor to SpotOption.

The Israeli software company was implicated in a multibillion-dollar binary options scam and banned in 2018, following an investigation by the FBI.

According to Israel’s corporate registry, the former owner of SpotOption, Pinhas Patarkazishvili (aka Pini Peter), owns 90 per cent of CX Technologies. The other 10 per cent is held by American businessman Daniel Skowronsk.

The petition also revealed that a senior employee at both SpotOption and CX Technologies is a relative of Israel’s prime minister Benjamin Netanyahu.

Patarkazishvili has allegedly agreed with the petition’s assessment and allowed the bankruptcy proceedings to proceed.

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