Crypto Hybrid Exchange Ankex, Led by former Genesis CEO, Shuts Down

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Ankex, Qredo’s cryptocurrency exchange spearheaded by former Genesis Trading CEO, Michael Moro, has shut down operations.

“Ankex development has been paused”

The formerly up-and-coming Ankex was launched last year and was set to combine both centralized and decentralized features. Moro stepped down from Genesis in the summer of 2022 following the collapse of Three Arrows Capital before joining the hopeful crypto exchange in early 2023.

Qredo has yet to give an explanation for Ankex’s shuttering, however, many are speculating that the company might have been facing financial setbacks amidst challenges from the ongoing bear market.

“Ankex development has been paused,” Qredo shared. “As some of you tested earlier this year, Ankex was ready for a public beta launch. Unfortunately, our path must pause at this stage.”

Dwindling finances

Debuting in 2022, Ankex was announced mere weeks after the collapse of Sam Bankman-Fried’s FTX, with Moro’s Genesis losing out on $175 million they had entrusted in the exchange. At the time, an unnamed representative from Ankex claimed there was “a new appetite for sophisticated exchange capabilities without the need to trust a third party or cede control of your assets.”

According to a press release, Ankex described itself as a “hybrid exchange that combines the speed, liquidity and low fees of centralized trading, with the security, control, and transparency offered by non-custodial, decentralized exchanges.”

This past February, Qredo raised over $80 million in Series A funding for the upcoming exchange, with the crypto firm’s value estimated at $460 million. 

However, when Ankex launched its beta platform in September of this year, Qredo was forced to make staff cutbacks in order to reduce an estimated 35% of its annual expenses.

According to The Block, who was the first to report news of the crypto exchange’s closing, a spokesperson claimed “Qredo will be rightsizing to focus on its core protocol and its web3 custody business” because of “the prolonged crypto winter.”

Just last month, the company cut half of all its remaining staff with only six months of runway left.

A turbulent time for crypto exchanges

Ankex’s troubles make them the latest to suffer setbacks following a turbulent year for crypto exchanges. 

Following the successful fraud trial of Bankman-Fried last month in Manhattan federal court, the IRS slapped the now-bankrupt FTX with a $24 billion tax bill, threatening the chances of FTX debtors ever getting their funds back.

Moreover, Binance founder, Changpeng “CZ” Zhao was forced to step down from his role as CEO amidst a number of regulatory enforcement actions against himself and the crypto exchange at large.

Whether or not Ankex is recoverable remains to be seen. Meanwhile, Moro seemingly confirmed the news via an update to his bio on X reading “formerly @GenesisTrading and @Ankexcom.”

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