CoinExchange is a centralized cryptocurrency exchange that claims to focus on altcoin trading. The platform is covered in secrecy as, at the time of this writing, its website doesn’t feature any information about the owners of the business, when was it founded and where is it registered. If the information on CoinExchange’s Twitter profile is to be believed, the platform was founded in 2018 and is situated in Australia. Unfortunately, the exchange doesn’t have a LinkedIn page either to help us verify this claim. The only possible confirmation of this is the statement in the “Terms and Conditions” page, which makes it clear that CoinExchange’s business is governed by the laws of the State of New South Wales.
The website’s “Terms and Conditions” page doesn’t feature any meaningful information regarding the company’s background and owners as well. What it does though, is to jump straight to the risks of cryptocurrency trading and also include a very concerning section, called “Limitation of Warranties.” The information there states that should the client use services from CoinExchange which cost less than AUD $40 000, “certain guarantees apply to those services.” It continues to say that these guarantees apply “regardless of any express warranties to which you may also be entitled under these Terms.” In general, the whole “Terms and Conditions” page focuses mostly on the users’ obligations and risks, rather than the actual services of the platform (who operates it, how is data stored and processed, which third-party service providers are involved, etc.).
Since CoinExchange doesn’t mention the owning company and doesn’t have a LinkedIn page, it is impossible to track down the people behind the platform. This lack of publicity doesn’t help in the case of building transparency and establishing the exchange as a trusted and credible service provider.
CoinExchange’s team claims that security is their top priority. The main page of their website states that the platform employs “an aggressive cold storage policy on all currencies” in its system. From the FAQ page, we understand that the platform employs two-factor authentication and IP address verification. According to the team’s description of the latter security measure, logins from new IP addresses trigger the sending of emails to the user. Once he verifies the ownership of the email and that he was the one logging from a new IP, the address is added to a list and is no longer unrecognizable.
CoinExchange doesn’t adhere to any KYC or AML procedures. There are no requirements for the users to send any documentation or identity proofs. The only thing that clients need is an email address. Signing up that way doesn’t even impose trading restrictions or any limitations.
The exchange’s website emphasizes the importance of good customer support. The supported communication channels, though, are limited to social media and a Ticket system. The team behind the project shares that they believe “good support is second only to security.” They also add that they “endeavour to answer” client’s queries as quickly as possible. However, this doesn’t seem to be the case judging by the users’ experience with the exchange’s customer support service. Numerous users on Reddit, Bitcointalk, Trustpilot, and Steemit report their struggles to get in touch with a platform’s representative. Furthermore, they report of various problems and security issues, such as blocked accounts directly after signup and without any prior notice or follow-up explanation, intentional deactivation of users’ accounts, unaddressed tickets, transactions pending for weeks, and so on. The most common problem, though, reported by the majority of users, is the loss of funds and vanished deposits once they log out and then log back into the account. According to the victims, the customer support representatives continuously refuse to address their issues.
When it comes to the topic of hacker attacks and security breaches, it is worth noting that CoinExchange became a victim of a DNS attack in 2018. Although there are no reports of lost funds, as a consequence of the attack, the access to the platform was restricted for a few days. CoinExchange migrated to a new domain – coinexchange2.com. After the situation was fixed, the platform returned to its original address.
At the time of this writing, there is no information about governmental investigations targeted at CoinExchange.