Defunct Crypto Exchange: What Happened and How to Avoid the Same Fate

A defunct crypto exchange, a cryptocurrency trading platform that has shut down, vanished, or been exposed as a scam. Also known as a failed crypto platform, it’s not just a website that went offline—it’s where people lost their money with no way to recover it. These aren’t rare accidents. They’re predictable outcomes of poor security, hidden teams, and zero regulation. You’ve probably heard of ezBtc or DSX—both were real exchanges that collapsed, leaving users with empty wallets and no answers. And they’re not alone. The crypto space is littered with platforms that promised fast trades and low fees, then disappeared with millions in user funds.

What makes a crypto exchange become defunct? It’s usually a mix of bad choices. Some, like ezBtc, were outright frauds from day one—no real trading engine, just a front to steal Bitcoin and Ether. Others, like DSX, started legit but crumbled under poor management, lack of liquidity, or legal pressure. In both cases, users trusted the interface, the branding, maybe even the fake customer support. But none had real audits, no transparent ownership, and no way to prove they held your coins. A crypto exchange scam, a platform designed to trick users into depositing funds with no intention of letting them withdraw doesn’t always scream "fraud." Often, it looks just like a real exchange—until you try to cash out.

And it’s not just about shady startups. Even platforms with years of history can collapse. Regulatory crackdowns, sudden bans, or lack of funding can turn a once-popular exchange into a ghost site overnight. That’s why knowing the difference between a failed crypto platform, a legitimate business that ran out of money or couldn’t comply with laws and a crypto bankruptcy, a legal process where a platform admits it can’t pay its users matters. One might leave you with a slim chance of partial recovery. The other? You’re just another name on a lost funds list.

What you’ll find here aren’t just obituaries for dead exchanges. These are post-mortems—real stories of what went wrong, how users got burned, and how you can protect yourself before it’s too late. From Canadian exchanges that skipped licensing to fake airdrops tied to non-existent platforms, the pattern is always the same: too good to be true, no paper trail, and zero accountability. If you’ve ever wondered why your favorite exchange suddenly disappeared, or if you’re thinking of trying a new one with no reputation, this collection gives you the red flags before you deposit a single coin.