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A bankruptcy petition filed last month for collapsed Nazdaq-affiliated DX.Exchange alleges that the company behind it was in fact CX Technologies Ltd—not, as laid out on DX.Exchange’s website—a company registered in Estonia, as reported by The Times of Israel.
The 78 current and ex-employees who filed the petition claim CX Technologies replaced SpotOption, a firm the FBI raided in January last year following suspicions of fraud. Decrypt has reached out for comment and will update this story if we hear back.
The alleged fraud in question—denied by SpotOption—was a banned financial option called “binary options,” where options either pay out, or pay nothing at all. The practise was banned by the Israel Securities Authority in 2016.
DX.Exchange opened in January this year, claiming to offer tokenized sales of securities, such as Tesla stocks. But it closed down earlier this month, claiming the business was too expensive to run, hoping for a sale or merger to resurrect it. So far, one has failed to appear and its employees are taking matters into their own hands.
Though DX.Exchange has denied links to SpotOption in the past, the petition said the majority of CX Technologies’ 55 employees used to work for SpotOption, that it’s located in the same office, and that funds and pension plans from SpotOption were switched from CX Technologies.
The employees also claimed that they had not been paid salaries for the months of September or October. On top of this, Cybersecurity company White Hat Ltd., marketing company Bee2See Botan B.S. solutions, and IT company Malam Team, are suing the firm for allegedly not paying them for services.
The petition also stated that Miriam Mileikowsky, a relative of Israel’s Prime Minister, Benjamin Netanyahu, was a senior employee of CX Technologies and SpotOption.