The Zeniex Cryptocurrency Exchange, a joint venture between Korean and Chinese partners, closed its operation Friday.
The shutdown came after a police investigation over its cryptocurrency fund ZXG. The probe started after the Financial Supervisory Service has asked the police to probe Zeniex for violating the Capital Market Law.
The police probe has dealt damage to the exchange as investors quit the exchange. Seoul analysts expressed concern that Zeniex might be the first in a series of Seoul’s crackdown on cryptocurrency exchanges.
Zeniex token was a high-risk and high-return investment. The shutdown might trigger complaints from China, they added.
In its high-profile launch, Zeniex trumpeted that it is a new coin exchange that is designed as a comprehensive financial platform that will offer services for people in the business of virtual money and other financial markets. It has traded Bitcoin, Bitcoin Cash, Either, Ethereum Classic, Light Coin, BTM, EOS, and QTUM, as well as Zero X.
