Zg.Top Exchange is a Mongolian centralized cryptocurrency trading platform. The trading platform is owned and operated by the ZG Top Technology Co. Ltd., and claims to be situated in the “Global Blockchain Research Center” of Mongolia. According to its website, aside from the exchange business, the ZG Top holding group includes also ZGlabs (a project incubator), ZGfund (an investment fund), ZGtoken (a platform token) and ZGtechnology (technical support).
At the time of this writing, the present information about the date of founding varies. According to Zg.Top’s profiles on multiple cryptocurrency statistics websites, it was founded in 2015. However, its Twitter profile was launched in May 2018.
There is also no information about the people behind the project. The exchange also does not have a LinkedIn profile. At the time of this writing, detailed research points out to only one employee, called Zhang Eli. However, the user’s profile does not have a profile photo or any other experience, except for the job at Zg.Top. The “About” section of its website provides impartial or badly-presented information in English, which does not help in the case of understanding more about the exchange. Although there are no details who are the founders of the project, the Zg.Top team claims to have obtained investment of $10 million from a variety of investors, such as Songhe Capital, Bit Times AEX, Xiaoqiao Capital, Mousse Group, Waldorf Capital, and Baihui Business Group. If that was the case, there is no reason for the lack of publicity or at least some interviews with the upper management.
There is also a statement that the company has “obtained the blockchain transaction financial license issued by GBC of the Global Blockchain Research Center.” From the available information, we understand that the mentioned Global Blockchain Research Center (GBC) headquartered in Ulaanbaatar, Mongolia and serves as an “independent research institute focusing on the research of blockchain and devoted to the development of the blockchain industry.”
Zg.Top describes itself as “the world's leading blockchain asset trading platform.” However, at the time of this writing, it is hard to confirm the accuracy of this statement as Zg.Top fails to qualify even among the top exchanges in Asia. Aside from that, the lack of sufficient information about the people behind the project, its goals or realistic performance, fails to pave the way for its establishment as a transparent and open business.
Upon registration, the platform requires its clients to provide personal information such as name, email, address, telephone, and a government-issued ID. This is much information for a company that highlights in its “Term and Conditions” page that in cases of potential losses or expenses incurred during the use of the platform, the only one responsible is the user. The exchange states also that it is not liable for any problems, resulting from loss of profits, unauthorized use of the client’s account, data, or other intangible losses. It proceeds to say that in no event it shall be liable for any failure or delay of service resulting from external factors, governmental acts included. By signing for the exchange’s service, the user basically agrees to the fact that Zg.Top escapes all responsibilities should there is a potential problem with the functioning of the business.
On November 25th, the Zg.Top exchange suffered a hacker attack that resulted in the loss of 100 ETH and 330 000 USDT. The exchange’s team managed to track the hacker and found out that the stolen funds were transferred to a Bittrex account (Bittrex is a Seattle-based cryptocurrency exchange). When Zg.Top contacted Bittrex to seek information, Bittrex replied that it had identified the account holder but would not disclose further identify details unless there is a court order. Zg.Top then proceeded with a lawsuit. Although Zg.Top operates in Asia, it decided to sue the unknown attacker in the Federal Court of Seattle, which is strange, considering the fact that the exchange has no business there. The only logical reasons pointed out by multiple legal experts, are the fact that Bittrex is located there and that the US laws allow for suing unknown parties (also known as “John Doe lawsuits”).