Crypto Industry Debates Custody and Security Amid CEX Shutdowns

The recent shutdowns of several centralized cryptocurrency exchanges have sparked a renewed debate over custody and security in the crypto industry.

X user MASTR published a database listing dozens of CEX (centralized exchange) closures that have occurred over the past decade, including well-known cases such as Mt. Gox, FTX, QuadrigaCX, Cryptopia, Hotbit, Bittrex, and BitForex.

The list includes exchanges that ceased operations due to bankruptcies, hacks, seizures, disappearances, or planned closures, with the latest entries being BitMEX, scheduled to close on September 23, 2026, BitMart on January 31, 2027, and AscendEX, which ended operations on July 1, 2026.

Binance founder Changpeng Zhao commented on the complexity of acquiring centralized exchanges, stating that purchasing a crypto exchange differs from acquiring other businesses due to security risks that may remain hidden after a transaction is completed.