CoinEx to Shut Down by December Amid Rising Security and Compliance Risks

CoinEx, a Hong Kong-based crypto exchange, has announced its decision to cease operations by December 22, 2026. According to founder Haipo Yang, all operations will shut down due to increasing security and compliance risks. The exchange's revenue declined while the risks and responsibility increased, making it 'no longer a rational choice' to continue running the platform.

CoinEx has suffered several setbacks in recent years, including a $70 million hack in 2023 that was fully repaid by the exchange. However, new challenges arose with stiff competition from upstarts like Hyperliquid and regulatory scrutiny.

The exchange's alleged involvement in funneling Iranian crypto flows also raised compliance risks. CoinEx denied knowledge of the relationship but began blocking Iranian IP addresses after a TRM Labs report in June 2026 revealed $4 billion in Iranian crypto flows were facilitated through the platform.