DSX was once a name you might have seen on crypto forums - a quiet, professional-looking exchange that promised the reliability of London’s financial markets. But today, it’s gone. Not just offline - dead. If you’re looking at DSX crypto exchange right now, you’re probably wondering if it’s still safe, if you can get your money back, or if it’s worth considering as an option. The answer is simple: Don’t use it. DSX filed for bankruptcy in January 2021 and hasn’t come back. Worse, it’s now listed as a scam on Crypto Legal UK’s 2025 fraud database. This isn’t just another failed startup. It’s a cautionary tale about what happens when a crypto exchange cuts corners on security, transparency, and regulation.

What Was DSX Crypto Exchange?

DSX Global launched in 2014 out of London, founded by people with backgrounds in traditional finance. They didn’t want to be another flashy crypto platform. Instead, they aimed to look and feel like a bank - clean interface, professional design, and a focus on established cryptocurrencies only. At its peak, DSX supported 29 coins, including Bitcoin, Ethereum, Litecoin, and Ripple. It accepted EUR, GBP, USD, and even RUB for deposits, and later added credit card funding in 2019. It even had mobile apps for iOS and Android, which was rare for smaller exchanges back then.

Their pitch was simple: We’re not here for the latest meme coins. We’re here for serious traders who want stability. And for a while, that worked. Users liked the clean UI, the two-factor authentication, and the cold storage setup. But behind the polished surface, things were crumbling.

Why DSX Failed

There’s no single reason DSX died. It was a slow collapse built on three fatal flaws.

• Limited coin selection - Supporting only 29 cryptocurrencies meant DSX missed the entire altcoin boom. While Binance and Coinbase added hundreds of new tokens each year, DSX stuck to the basics. Traders who wanted exposure to Solana, Cardano, or Polkadot had to leave. That killed growth.
• No regulatory approval - DSX was applying for FCA registration under the UK’s 5th AMLD, but never got it. By 2021, regulators were cracking down hard. Exchanges without proper licensing were being shut down. DSX didn’t have the capital or compliance team to push through.
• No financial transparency - No one ever saw DSX’s reserve reports. No audits. No proof of funds. CoinMarketCap listed its volume as "untracked" - a red flag for any serious trader. When users asked where their money was, the answer was silence.

Then came the final blow: bankruptcy. On January 12, 2021, DSX shut down without warning. No email. No notice. Just a website that went dark. Users reported being unable to withdraw funds. Some tried contacting support - no replies. Others checked forums and found others in the same boat. A few even claimed they’d been scammed.

Was DSX a Scam?

Technically, DSX wasn’t a classic "pump-and-dump" scam. It didn’t create fake tokens or run rug pulls. But being a scam isn’t just about theft. It’s about betrayal of trust.

The UK’s Crypto Legal UK added DSX to its "List of Reported Scam Companies in 2025" - not because of fraud, but because of its failure to return user funds and its lack of accountability after bankruptcy. That’s a key distinction. Most exchanges that fail go quiet. DSX went from quiet to criminal. If you deposited money, you likely lost it. There’s no public record of any compensation, clawback, or legal action that helped users recover their assets.

Even worse, the exchange’s website still exists - but it’s a ghost. No updates. No contact info. No support. It’s a digital tombstone.

How DSX Compared to Other Exchanges

At its height, DSX was somewhere in the middle. Not the biggest, not the worst. But it had serious weaknesses.

CEX.io and Coinbase didn’t just outperform DSX - they made it irrelevant. They offered more coins, better security, insurance for user funds, and clear regulatory compliance. DSX had none of that.

What Happened to Users’ Money?

No one knows. Not even regulators.

After the bankruptcy filing, DSX vanished. No liquidation plan. No trustee appointed. No public update. Users who had Bitcoin, Ethereum, or fiat deposits simply lost access. Some tried filing claims through UK insolvency courts - but without proper documentation or legal backing, most were ignored.

There are no reports of users recovering funds. No news articles. No Reddit threads with happy endings. Just silence.

This is the biggest lesson from DSX: Never trust an exchange that doesn’t prove it has your money. If they won’t show you proof of reserves, don’t leave your coins there.

Where Should You Go Instead?

If you’re looking for a reliable, safe, and active crypto exchange, here are two solid replacements:

• CEX.io - A well-established platform with strong security, insurance, and regulatory compliance. It supports over 100 cryptocurrencies, has mobile apps, and accepts bank transfers and cards. It’s the direct successor to DSX’s original promise - professional, stable, and transparent.
• Coinbase - The gold standard. Licensed in the US, UK, EU, and Australia. Offers insurance on all stored assets, real-time audits, and a simple interface. With over 100 million users, it’s the most trusted name in crypto.

Both have full regulatory licenses. Both publish proof of reserves. Both respond to customer support. DSX had none of that.

Lessons Learned

DSX didn’t fail because it was too small. It failed because it pretended to be safe without the systems to back it up.

Here’s what you should always check before using any exchange:

1. Is it licensed? Look for FCA (UK), FinCEN (US), or similar regulatory approval.
2. Do they show proof of reserves? If they don’t, don’t trust them.
3. Is there insurance? Coinbase and CEX.io insure user funds. DSX did not.
4. Can you withdraw easily? Test with a small amount first.
5. Is the platform active? Check forums, Reddit, and Twitter. If no one’s talking about it, that’s a warning.

DSX is gone. But its legacy lives on - as a warning. Don’t let your next crypto move be based on a pretty website or a name you remember from five years ago. Do the homework. Choose exchanges that prove they’re trustworthy - not ones that just look like it.