Over 60 Crypto Platforms Announce Closures, Cite Security

More than 60 crypto platforms have announced wind-downs in 2026, according to a Bitcoin.com analysis published on July 28. This list includes major players like BitMEX and BitMart, as well as smaller exchanges, blockchains, and DeFi protocols.

Most closures occurred quietly, without the drama of FTX‘s collapse in 2022. However, the impact is significant, particularly for users in regions like Africa, where crypto adoption is high, as highlighted by Nigeria’s sixth and Ethiopia’s twelfth rankings in Chainalysis’s 2025 Global Crypto Adoption Index.

A Wave of Closures

Between January and July, more than 60 exchanges, blockchains, wallets, DeFi protocols, and other crypto projects shut down, filed for bankruptcy, or began winding down. The reasons for these closures vary, including security exploits, regulatory issues, and unsustainable business models.

Some platforms ceased operations abruptly. For instance, AscendEX halted its services on July 1, citing the EU’s MiCA regime and financial difficulties, while BitMart provided a phased wind-down plan, with trading ending on August 26 and full closure scheduled for January 31, 2027. Withdrawal requests submitted by 05:00 UTC on August 26 followed the standard route, with later ones processed separately. BitMart’s native token, BMX, plummeted by as much as 60% within 24 hours of the announcement.

Causes of Platform Closures

The Bitcoin.com analysis identifies three primary causes for these closures:

Security breaches led to the downfall of several platforms. Step Finance, for example, lost $40 million in a January 31 hack and closed on February 24. Similarly, Radiant Capital suffered a $50 million loss in an October 2024 exploit and wound down after failing to recover funds. Carrot Finance, a Solana lending protocol, shut down on April 30 after an $8 million loss tied to the Drift Labs exploit left it insolvent. Secondfi, a Cardano wallet, closed on July 22 after attackers stole 16.1 million ADA (roughly $2.4 million) in June.

Regulatory challenges also played a significant role. AscendEX lacked authorization under the MiCA regulations, while EXMO, popular with Russian-speaking traders, began winding down after the UK added it to its Russia sanctions list on May 26. EXMO disputes the sanctions, stating that 29.4% of user obligations cannot be returned due to a 2020 hot-wallet hack and new freezes by custodial and banking providers.

Many platforms struggled to establish sustainable business models. Sophon, a Layer 2 protocol, raised $60 million but generated only $30 daily in fees. Everclear, despite processing $500 million monthly, failed to find a viable revenue stream.

These closures raise concerns about the stability of crypto platforms, particularly for users in emerging markets. While larger exchanges like Binance and Coinbase offer greater stability, they are also more likely to exit regions with challenging regulatory environments, as seen when Binance suspended peer-to-peer trading in Nigeria in 2024.

Impact on Users and the Future of Crypto

The closures have prompted many users, especially in emerging markets like Africa, to reevaluate their dependence on crypto platforms. Countries such as Nigeria and Ethiopia, which rank high in crypto adoption, face uncertainty as platforms like BitMart and AscendEX cease operations. While BitMart serves over 13 million users in 180 countries, its closure announcements do not provide regional user breakdowns.

The Shift Towards Self-Custody and Decentralized Options

The crypto industry is increasingly dominated by a few major players, with smaller platforms being marginalized. As of July 2026, the remaining platforms are primarily the largest exchanges, which, while more stable, may prioritize commercial interests over accessibility in regions like Africa.