DX.Exchange Employees Press to get the Firm Dissolved
According to reports from Israel on November 24, 2019, 78 current and ex-personnel of the Israeli firm behind DX.Exchange, many of whom are former employees of the FBI-raided company, SpotOption, have petitioned to have their employer dissolved.
The Israeli company backing cryptocurrency exchange DX.Exchange is undergoing bankruptcy proceedings after 78 of its current and ex-employees petitioned a local court to close it down.
Filed on October 24, the petition contained many surprising claims and revelations, associating the crypto exchange with Israel’s notorious binary options industry. It also claimed that Israeli company, CX Technologies Ltd., established and operated a cryptocurrency trading platform. The trading platform was called DX.Exchange.
Whilst DX.Exchange states that it is owned by a company registered in Estonia, the petition disagrees and affirms that it was operated by CX Technologies. It further alleges that CX Technologies is an heir company to SpotOption, a platform provider for binary brokers that was raided by the FBI in January 2018 due to suspicions that it was involved in Israel’s multibillion-dollar binary options scam.
Although DX.Exchange has denied it had any relationship with SpotOption, the petition maintains that most of CX Technologies’ 55 employees are former personnel of SpotOption that were employed by the new company in January 2018. According to the allegation, CX Technologies and SpotOption were situated in the same office, with the pension plans and other funds of employees moved without interruption from SpotOption to the newly established company.
Israel not so Crypto-Friendly
Just like in several other jurisdictions, life hasn’t been a bed of roses for crypto market participants in Israel due to regulatory dark clouds. On August 6, 2019, BTCManager reported that Israeli bitcoin traders are finding it difficult to pay taxes as banks keep on refusing crypto deposits.
“The tax authority is aware of the problem, but they say the ball isn’t in their court. I’ve tried working with almost all the banks, but the minute they hear the word ‘Bitcoin’ they freeze up.” Ron Gross, an Israeli bitcoin investor was quoted as saying.
In related news, earlier in August 2019, reports emerged that the founders of Israel’s Orbs blockchain project had been slapped with a lawsuit by one of its partners over fraudulent practices.
Meanwhile, Security Matters, a distributed ledger technology (DLT) project with its headquarters in Israel and listed on the Australian Stock Exchange recently filed a patent application in the USA for a blockchain solution for tracking the entire cannabis supply chain, according to a report on September 3, 2019.