Failed Crypto Exchange: What Happens When a Platform Dies and How to Avoid It

When a failed crypto exchange, a cryptocurrency trading platform that shuts down unexpectedly, often leaving users unable to access their funds. Also known as an crypto exit scam, it’s not just a technical glitch—it’s a theft disguised as bankruptcy. These aren’t rare accidents. In 2023 and 2024 alone, at least five major exchanges vanished without warning, taking millions in user deposits with them. You won’t find them on lists of "top exchanges" anymore. They’re gone—no customer service, no website, no answers.

What makes a crypto exchange fail? Usually, it’s a mix of poor management, lack of regulation, and hidden risks. Platforms like BitGlobal, a once-prominent exchange that abruptly shut down in 2023 after users lost access to their holdings and MyCoinStory, a derivatives platform that went silent with zero trading volume and no support didn’t collapse because of market crashes. They collapsed because they were never built to last. No real audits, no transparent reserves, no licensed operators. They looked legit, but they were designed to disappear. And when they did, users had no legal recourse—no FDIC insurance, no bank regulator to call, no refund process.

It’s not just about big names. Smaller platforms, often promoted with flashy ads and fake testimonials, are the most dangerous. They promise low fees, high returns, or exclusive airdrops to lure you in. But if the team is anonymous, the website looks like it was built in 2018, and the support email bounces, that’s a red flag. You don’t need to be an expert to spot these signs—you just need to know what to look for. And that’s what this collection is for. Below, you’ll find real case studies of exchanges that died, the scams that pretended to be them, and how to protect yourself before it’s too late. No fluff. No hype. Just facts from people who lost money and those who didn’t.