What if a crypto exchange
goes bust?
In September 2026 one exchange announced it was closing and another paused withdrawals after a hack. The question beginners should ask isn’t “which coin will pump”, but “where are my coins safe?”
CoinEx is shutting down: what should users do?
According to Wu Blockchain, CoinEx announced on September 15, 2026 that it would stop operating after nine years, citing weak markets, shrinking liquidity and rising compliance costs. It says reserves exceed 100% and users can withdraw in full.
| Date | What happens |
|---|---|
| Sept 15 | New sign-ups and referral rewards stop; futures close-only |
| Sept 22 | All services except spot stop |
| Sept 29 | Spot trading stops; CET bought back at 0.005 USDT |
| Dec 22 | Withdrawals close and the platform shuts down |
If you still hold assets on CoinEx, withdraw early to an exchange or wallet you trust, double-checking network and address. Unclaimed assets after the deadline move to custody per CoinEx’s notice and may incur fees.
The Bitget hack and withdrawal pause
According to Yahoo Finance and other reports, Bitget detected unauthorized transfers from some hot wallets on September 24, losing about $387.5 million. Withdrawals were paused while trading and deposits continued. Bitget says its user protection fund covers the full loss and balances are unaffected.
| Date | What resumes |
|---|---|
| Sept 28, 08:00 | Bitcoin network |
| Sept 29, 08:00 | ETH (Ethereum, BSC, Arbitrum, Base, Optimism) |
| Sept 30, 08:00 | USDT (Ethereum, BSC, Solana, Tron) |
| Oct 2, 08:00 | Other tokens, fiat and P2P |
The response was fairly transparent, but it shows that even large platforms can suffer security incidents. What matters is whether they have the reserves and protection funds to cover it.
When exchanges failed before, what happened to users?
| Event | What happened | Outcome for users |
|---|---|---|
| Mt. Gox (2014) | About 850,000 BTC lost, then bankruptcy | Repayments started roughly a decade later |
| FTX (Nov 2022) | Customer funds misused; bank run and bankruptcy | Long bankruptcy process, paid at dollar value on the filing date |
| CoinEx (Sept 2026) | Voluntary, orderly shutdown | Says users can withdraw in full before the deadline |
| Bitget (Sept 2026) | Hot-wallet hack, withdrawals paused | Protection fund covers losses; phased restart |
The worst case isn’t an exchange closing; it’s one that has secretly spent customer funds, as FTX did. That’s why verifiable proof that “your coins are still there” matters.
What is proof of reserves, and why check it?
Proof of reserves (PoR) is how an exchange publicly shows that it holds at least as many coins as its users have deposited. It usually includes:
- Wallet addresses: public on-chain addresses anyone can check.
- Merkle tree verification: lets you confirm your own balance is included in total liabilities.
- Reserve ratio: reserves ÷ user assets; 100% or more means fully backed.
OKX has published proof of reserves monthly since 2022, with reserve ratios for major assets like BTC, ETH and USDT consistently above 100%, and you can verify your own balance in the app or at okx.com.
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How can a beginner judge whether an exchange is trustworthy?
| Check | What to look at |
|---|---|
| Size and track record | Years operating, users, volume; has it survived bull and bear markets |
| Proof of reserves | Published regularly and verifiable by you |
| Licenses | Licensed or registered in multiple jurisdictions |
| Incident history | Past incidents, whether a protection fund covered them, how transparent it was |
| Withdrawals | Whether withdrawals are normally fast and not delayed without reason |
For beginners, a top exchange + account security settings + not keeping everything in one place are the three most useful rules.
Is it safe to keep crypto on an exchange?
| On an exchange | Self-custody wallet | |
|---|---|---|
| Who holds the keys | The platform | You |
| Forgot password | Recoverable | Lose the seed phrase and it’s gone |
| If the platform fails | Affected | Not affected |
| Good for | Beginners and active traders | Larger, long-term holdings |
A practical approach for beginners: keep small amounts on a top exchange with an authenticator app and withdrawal whitelist turned on. Once amounts grow and you’ve learned to back up a seed phrase, move long-term holdings to your own wallet.
Exchange risk
FAQ.
01An exchange paused withdrawals. Is it about to collapse?
Not necessarily. Security incidents, upgrades and network congestion can all pause withdrawals. Look at whether the platform explains why, gives a restart time and has kept past promises. Long unexplained delays are the real red flag.
02Can I still withdraw from CoinEx?
According to CoinEx’s announcement, withdrawals stay open until December 22, 2026. Follow CoinEx’s official notices and act early.
03Did Bitget users lose money in the hack?
Bitget says its protection fund covers the full loss, balances are unaffected and withdrawals are resuming in phases. Check Bitget’s latest announcements.
04If an exchange goes bankrupt, can I get my money back?
It depends on whether reserves were intact and on the bankruptcy process. Even when users are repaid it can take years, sometimes at the dollar value on the filing date. Choosing carefully up front beats chasing afterwards.
05Is OKX safe?
OKX has operated for over a decade, publishes monthly proof of reserves and holds licenses in multiple jurisdictions. No platform is risk-free, so turn on security settings and don’t keep everything in one place.
06Small exchanges offer big rebates. Should I use one?
A big rebate doesn’t mean safety. Smaller platforms often have thin liquidity and opaque reserves, and a rebate won’t save your principal if they fail. Beginners should start with top exchanges.
Finished this chapter?
Read the next one.
Understand bitcoin and blockchain first, then the types of coins and mining, then how money is made, cashed out and kept safe. Each chapter takes about ten minutes.
What is bitcoin?
Who created it, why it has value, how many exist, what one costs today, and whether it’s a scam.
Chapter 2 · Blockchain in plain EnglishWhat is blockchain?
Blockchain, decentralization, public chains, smart contracts, gas fees and wallet addresses, explained with a shared ledger.
Chapter 3 · Digital yuan vs bitcoinTypes of cryptocurrency
Crypto vs digital currency vs China’s digital yuan, plus majors, altcoins, tokens, NFTs and DeFi.
Chapter 4 · Is Pi Network legit?What is crypto mining?
What miners actually do, whether you can mine at home, where it’s banned, and the truth about phone mining and Pi Network.
Chapter 5 · Whose money are you making?Can you make money with crypto?
Where crypto profits come from, why most beginners lose, and how to take part without getting hurt.
Chapter 6 · Bank account frozen after cryptoHow to cash out USDT
Selling USDT for local currency via P2P, why bank accounts get frozen, and what to do if yours is.
Learn first, then start small, and enter OK66688 when you sign up.
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