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DragonEx to introduce ‘temporary’ solution to allow withdrawals

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Singapore-based cryptocurrency exchange DragonEx published an update stating that it will introduce a temporary plan to allow withdrawal of crypto on its platform: 

Due to the uncertainty of the financing time, and in order to shorten the waiting time for everyone, the platform has decided to initiate a temporary restart plan to gradually resume deposit and withdrawal.

According to the latest announcement, customers will be required to acquire DragonEx Withdraw Quota or “DWQ” tokens, where 1 DWQ will allow users to withdraw assets worth 1 Tether (USDT). Users can acquire DWQ through trading, mortgage loan, or a deposit. In addition to this, DragonEx said that the platform is expected to open DWQ/USDT on 15 November and that its users can freely transfer DWQ.

DragonEx was hacked on March 24, 2019, resulting in the theft of an undisclosed amount of crypto assets which was worth about $8.8 million at that time, forcing the platform to shut down. DragonEx team had said that they “worked hard” for a year to relaunch its services and recover the stolen crypto, which is still missing.

However, last month, DragonEx had announced that it had completed the maintenance and upgrade of its trading platform and that it had resumed spot trading. At that time the exchange had said that it suspended deposits and withdrawals of all digital currencies due to certain issues connected to crypto exchange OKEx’s suspension of withdrawals. They believed that the OKEx incident had created a “crisis of trust” in centralized exchanges, among a large number of crypto traders, which triggered a run on funds that quickly deteriorated the platform’s services.

In fact, the DragonEx team had stated that they would shut down the platform if they didn’t manage to successfully reorganize by 2 November. 

Now, DragonEx added that if the platform became profitable again, it would begin regular withdrawals, without the need for the DWQ token requirement. It would also destroy all DWQ tokens if and when the exchange resumes regular withdrawals.

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Alisha is a full-time journalist at AMBCrypto. Her interests lie in blockchain technology, crypto-crimes, and market developments in Africa and the United States

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