Cobinhood Announces Shutdown, Claims It Will Audit User Accounts

Troubled crypto exchange Cobinhood has announced it is shutting down – but just temporarily, it seems.

AccessTimeIconJan 10, 2020 at 3:16 p.m. UTC
Updated Sep 13, 2021 at 12:07 p.m. UTC

Troubled crypto exchange Cobinhood has announced it is shutting down – but just temporarily, it seems.

In a "shutdown notice" on its website on Friday, the firm stated:

COBINHOOD Exchange is shutting down and auditing all accounts' balances from Jan 10 to Feb 9 in 2020. It will be re-opened on Feb 10, 2020. All COBINHOOD users can then retrieve their funds accordingly. Please DO NOT make any deposits; it may result in permanent loss.

The message is somewhat unclear if the platform will be reopened for trading or just retrieval of funds.

The firm had largely been silent in the last eight months, with rumors circulating it may have gone bankrupt or run off with users' funds in an "exit scam."

Founder Popo Chen responded in a blog post in May 2019 saying that was not the case, though the firm had had problems.

He claimed a legal issue within the firm had forced him out briefly. Soon after, Cobinhood also had to be "suspended" and staff let go, he said. The exchange, he said, was "functional and not affected."

In July, Chen further posted:

The future plan of the company is not final yet. Shareholders are under positive negotiation and we may reach a final solution aiming before the end of July.

He also acknowledged issues with withdrawals at the exchange, saying they were due to an "unsolved withdrawal problem."

In 2017, Academy Award winning actor Jamie Foxx promoted Cobinhood's upcoming initial coin offering, a sale that eventually raised almost $10 million.

Read more about


Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.


CoinDesk - Unknown
Hard Times in Crypto: the Unintended Consequences of Going Public

The third and final reflection on a series of risks we’re thinking about during these crypto down days.

CoinDesk - Unknown
CoinDesk - Unknown
After Bitcoin Maximalism

A Twitter debate sparks much reflection.

CoinDesk - Unknown
CoinDesk - Unknown
Three Arrows Paper Trail Leads to Trading Desk Obscured Via Offshore Entities

As Three Arrows Capital collapsed under market pressure, its much-lesser known trading desk, TPS Capital, remained active, sources say. But a complex ownership structure might frustrate creditors' efforts to collect.

CoinDesk - Unknown
CoinDesk - Unknown
June Was Bitcoin’s Worst Month Ever

Plus, European crypto regulation comes into view.

CoinDesk - Unknown