Over 75 cryptographic exchanges (CEX) have closed in 2020 due to hacks, scams or have voluntarily shut down for other reasons.
The Centralized Crypto Exchanges Graveyard
Crypto Wisser Exchange Graveyard notes that five of the exchanges were identified as scams and 4 were identified as compromised, namely Altsbit and Nerae. A total of 31 have voluntarily closed down.
As DeFi has grown since the beginning of the year, so has the rate of scams and hacks across the cryptocurrency industry.
Acceleration of DeFi
Regulatory challenges have often risen since the rise of DeFi, with some exchanges not able to keep up.
Along with hacks and other difficulties across the centralized exchange (CEX) space, many exchanges end up going belly up.
The most high-profile exchanges currently in a state of flux are BitMEX and KuCoin.
The founders of BitMEX have faced charges from the CFTC and KuCoin suffered a $281 million hack that resonated across the cryptocurrency industry.