EQONEX Crypto Exchange Review: Why It Shut Down and What Happened to User Funds
Feb, 24 2025
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EQONEX was once a name you might have seen on crypto forums or trading lists. It promised low fees, a clean interface, and a native token called EQO that gave users discounts and rewards. But today, the platform doesn’t exist. No login page. No trading. No customer support. Just silence.
What Was EQONEX?
EQONEX, originally called EQUOS Exchange, launched in May 2020 from Singapore. It was owned by Diginex, a company that made headlines in 2021 by becoming the first crypto exchange to go public on Nasdaq under the ticker EQOS. At first glance, it looked legit. The team had experience, the website was polished, and they offered features that smaller exchanges didn’t - like free withdrawals if you held 500 EQO tokens, and daily airdrops of the token itself. The platform supported spot and futures trading, with leverage only available on futures contracts. You could trade Bitcoin, Ethereum, and about 30 other coins - not a huge selection compared to Binance or Kraken, but enough for casual traders. The interface was simple: charts, order books, and a clean layout that didn’t overwhelm beginners. Its native token, EQO, was central to its model. Holding EQO gave you lower trading fees, access to staking rewards, and the ability to use it as collateral for derivatives. Some users reported earning hundreds of dollars in a year just from staking and fee discounts. The platform also offered automated trading bots, which appealed to algorithmic traders looking for a no-code setup.Why Did EQONEX Fail?
By late 2021, things started to unravel. Trading volume dropped from $180 million in June 2021 to just $85 million by December. That’s a 53% decline in under six months - a red flag in any exchange, but especially in crypto, where liquidity is everything. Fewer trades mean less fee revenue. Less revenue means less ability to pay staff, maintain servers, or attract new users. The exchange never got full regulatory approval from Singapore’s Monetary Authority. It operated under a temporary exemption while waiting for a license under the Money Services Act. That uncertainty scared off institutional investors and banking partners. Without those relationships, moving fiat in and out became harder, and users started leaving. Then came the bankruptcy. On November 22, 2022, EQONEX announced it was shutting down its exchange entirely. The official reason? To cut costs and focus on asset management and custody services - businesses with better margins. CEO Jonathan Farnell said they were exiting the “crowded crypto exchange space.” But not everyone bought it. Traders Union, a watchdog group that tracks exchange fraud, labeled EQONEX as fraudulent in its 2025 review. They pointed to the sudden shutdown, lack of transparency around user funds, and the fact that the company pivoted to asset management while leaving retail traders in the dark. No public update. No refund plan. No bankruptcy court filings detailing how user assets were handled.What Happened to Your Money?
If you had Bitcoin, Ethereum, or any other crypto on EQONEX when it shut down, you were out of luck. As a centralized exchange, EQONEX held your private keys. That means your assets weren’t yours anymore - they were on EQONEX’s wallets. When the company filed for bankruptcy, those wallets became part of the estate. There’s no public record of users getting their funds back. No class-action lawsuits. No recovery portal. No email updates. The website went dark. The EQO token, which once traded around $0.50, now trades at fractions of a cent on obscure decentralized exchanges - if it trades at all. Its value is essentially zero. Compare that to Kraken or Coinbase. Both have insurance funds, clear bankruptcy protocols, and years of regulatory compliance. EQONEX had none of that. It was a short-term play with no safety net.
How Did It Compare to Other Exchanges?
In 2025, the crypto exchange landscape looks very different than it did in 2020. Kraken supports over 400 coins, has never suffered a major hack, and maintains a perfect 10/10 Trust Score on CoinGecko. Coinbase offers easy onboarding, FDIC insurance on USD balances, and is regulated across multiple U.S. states. Even Crypto.com, which launched around the same time as EQONEX, now has a global user base of 100 million and offers crypto-backed credit cards. EQONEX couldn’t compete. It had fewer coins. Slower support (though some users praised response times, others reported delays). No mobile app until late 2021, and even then, it was buggy. No fiat on-ramps for most countries. No insurance. No clear roadmap beyond the token. Its biggest flaw? It didn’t solve a real problem. Most users didn’t need another exchange with 30 coins and a token reward system. They needed security, liquidity, and reliability. EQONEX delivered none of that long-term.Was EQONEX a Scam?
The company claimed it shut down to focus on better business lines. But the timing is suspicious. It launched in 2020, raised capital, promoted EQO heavily, and then vanished in 2022 - right after crypto prices crashed and regulatory pressure mounted. The lack of transparency around user funds is the biggest red flag. Legitimate companies that go bankrupt still communicate with customers. They file court documents. They set up recovery processes. EQONEX did none of that. Traders Union’s label of “fraudulent” isn’t just opinion - it’s based on patterns seen in past scams: rapid token promotion, lack of regulatory compliance, sudden shutdown, zero communication with users. It matches the profile of other failed exchanges like FTX and BitMEX - just on a smaller scale.
What You Should Learn From EQONEX
If you’re looking for a crypto exchange in 2025, EQONEX is a textbook example of what NOT to do. Here’s what to watch for:- Regulation matters: Choose exchanges licensed in the U.S., EU, or Singapore. Avoid those operating under “temporary exemptions.”
- Don’t trust token rewards: If an exchange pushes its own token too hard, it’s often a way to inflate trading volume or raise money before vanishing.
- Check trading volume: If volume drops sharply over months, it’s a sign users are leaving - and the platform may be dying.
- Never leave large amounts on any exchange: Use a hardware wallet for long-term holdings. Exchanges are not banks.
- Look for insurance: Kraken, Coinbase, and Gemini insure customer assets. EQONEX did not.
Where to Trade Instead in 2025
If you’re looking for a safe, reliable exchange today, here are your best options:- Kraken: Best overall. 400+ coins, strong security, no hacks in over a decade, low fees, and regulated globally.
- Coinbase: Best for beginners. Simple interface, U.S. regulatory compliance, FDIC insurance on USD balances.
- Crypto.com: Great for rewards. Offers a crypto debit card, staking, and low fees for high-volume traders.
- Uphold: Best for fiat on-ramps. Supports 30+ fiat currencies and 200+ crypto assets with instant conversions.
Final Verdict
EQONEX wasn’t just another failed crypto exchange. It was a warning sign wrapped in a polished interface. It looked professional. It had a Nasdaq-listed parent company. It even had a token with real utility - at first. But when the market turned, it had no safety net. No insurance. No clear path forward. And when it collapsed, it left users with nothing but questions. In crypto, reputation and longevity matter more than flashy features. EQONEX had none of that. If you’re thinking of using a new exchange, ask yourself: Would I trust this company with my life savings? If the answer isn’t a loud yes, walk away.EQONEX is gone. Don’t look for it. Don’t try to recover funds. And don’t let its story be your first lesson in crypto.
Is EQONEX still operating in 2025?
No, EQONEX shut down permanently in November 2022 after filing for bankruptcy. Its trading platform is offline, its website no longer functions, and all trading pairs have been delisted. There is no way to access your account or recover funds.
Can I still trade EQO tokens?
EQO tokens still exist on a few decentralized exchanges, but they’re essentially worthless. Trading volume is near zero, and the token has no utility since the EQONEX platform is gone. Holding EQO now offers no fees, staking, or rewards - it’s just digital clutter.
Was EQONEX regulated?
EQONEX operated under a temporary exemption from Singapore’s Monetary Authority and never received full licensing under the Money Services Act. This lack of formal regulation made it harder to partner with banks and attract institutional clients, contributing to its collapse.
Did users get their money back after the shutdown?
There is no public record of any user recovering funds from EQONEX after its bankruptcy. The company did not disclose how customer assets were handled, and no recovery process was ever established. Most users lost their holdings entirely.
Why did EQONEX close when other exchanges survived?
EQONEX failed because it couldn’t compete in a crowded market. It had a limited coin selection, declining trading volume, no insurance for user funds, and lacked full regulatory approval. Unlike Kraken or Coinbase, it didn’t build trust or scale. When crypto prices dropped in 2022, it had no financial cushion to survive.
Is EQONEX considered a scam?
While EQONEX claimed it shut down for business reasons, independent watchdogs like Traders Union classify it as fraudulent due to its sudden closure, lack of transparency, and failure to return user funds. Its behavior matches patterns seen in past crypto scams - promotion, rapid growth, then silence.
Eddy Lust
November 27, 2025 AT 12:17man i remember signing up for eqonex because of those daily airdrops... felt like free money at the time. i staked like 200 eqo and got maybe $80 in rewards over six months. not life-changing, but hey, free crypto. then one day the site just... vanished. no email, no warning, nothing. i still check my wallet sometimes like it might come back. dumb, i know. but hope is a weird drug.
now i keep 95% of my stuff in a ledger. even if the exchange is legit, i dont trust them with my keys. never again.
Kristi Malicsi
November 28, 2025 AT 19:37eqonex was the definition of a pretty face with no backbone
they looked like they knew what they were doing right up until the moment they disappeared. the token rewards were a trap wrapped in a slick interface. people got hooked on the dopamine of free eqo and never asked who was really holding the bag. the fact that they never filed proper bankruptcy papers? that’s not a business decision. that’s a crime scene.
we keep saying crypto’s the future but we still let these polished scams win because we want to believe in the dream. eqonex didn’t fail because of the market. it failed because it was never built to last.
Shelley Fischer
November 30, 2025 AT 16:49It is deeply concerning that a platform associated with a Nasdaq-listed parent company could operate without full regulatory compliance and subsequently vanish without any formal disclosure to its user base. The absence of a bankruptcy filing, the lack of communication regarding custodial assets, and the complete erasure of customer support infrastructure constitute a gross breach of fiduciary responsibility. This is not merely a business failure; it is a systemic failure of accountability in the digital asset space. Users deserve transparency, regardless of market conditions.
For retail investors, this case underscores the non-negotiable importance of regulatory licensing, insurance mechanisms, and verifiable corporate governance before entrusting any capital to a centralized exchange.
Komal Choudhary
December 1, 2025 AT 22:07bro i live in india and i used eqonex because binance was blocked here. i thought it was safe because the website looked so professional. i put in 0.5 btc and just... poof. no reply from support. i emailed them for 6 months. nothing. then i found out they were based in singapore but had no license. why did they even let people from india sign up? they knew we had no other options. it feels like they targeted people like me. i lost my rent money. i still cry sometimes.
now i use wazirx. not perfect but at least they answer emails.
Wilma Inmenzo
December 3, 2025 AT 14:01OF COURSE IT WAS A SCAM. DID YOU SEE THE CEO’S NAME? JONATHAN FARNELL? THAT’S A FAKE NAME. IT’S LIKE A BORING VERSION OF JONATHAN CROFT FROM A 2003 CSI EPISODE. AND THE NASDAQ LISTING? HA. DIGINEX WAS A SHELL COMPANY THAT IPOED ON A BACKDOOR. THEY NEVER HAD REAL REVENUE. THE EQO TOKEN WAS JUST A PUMP-AND-DUMP WITH A WEBSITE. THEY KNEW THE CRASH WAS COMING AND RAN WITH THE MONEY BEFORE THE FED EVEN BLINKED.
THEY’RE STILL OUT THERE. JUST UNDER A DIFFERENT NAME. NEXT TIME THEY’LL BE CALLED ‘CRYPTOVAULTX’ OR ‘BLOCKCHAINXPERTS’. WATCH. I’M TELLING YOU. THEY’RE ALL CONNECTED. THE GOVERNMENT KNOWS. THEY JUST LET IT HAPPEN.