UK-registered crypto exchange EXMO shuts down after sanctions-related account freezes

EXMO, a UK-registered crypto exchange, has announced it is ceasing operations after British authorities blocked its bank accounts, fiat reserves, and digital assets. For high-risk operators, the useful bit is simple: once banking, custody, and partner infrastructure are pulled at the same time, the trading venue can stop functioning almost overnight.

1. UK authorities said in May that they suspected EXMO Exchange of helping evade British sanctions against Russia. After that, banks, custodial providers, and partner crypto platforms blocked access to EXMO’s accounts and transaction-processing infrastructure, and the company said its marketplace was effectively paralysed.
2. British and foreign banks were told not to service the exchange or process any transactions for it. Providers, app stores, and social networks were also ordered to restrict access to EXMO’s services, which is the kind of multi-layered cutoff that leaves very little operational room.
3. EXMO said new user registration has been stopped, while trading has been switched to liquidation mode: new orders cannot be opened, and conversion is available only to prepare assets for withdrawal. The company advised clients to withdraw available funds as soon as possible, warning that processing may take several days and withdrawal fees may rise because of infrastructure restrictions.
4. Users need to complete full verification to get funds out, and withdrawal requests can only be submitted through the platform’s web version. That matters operationally because mobile or app-based fallback is off the table.
5. EXMO said the unsecured portion of its liabilities to clients has reached 29.4%. The shortfall was driven not only by assets blocked by third-party providers, but also by the impact of a 2020 hack, after which the exchange allocated debt-claim tokens called USDRecover (USDRec), which cannot be withdrawn or sold and only entitle holders to a proportional distribution of assets if frozen or stolen funds are recovered in the future.

EXMO said the international platform is the one shutting down. Its Russian, Belarusian, and Kazakh businesses were sold in 2022 and have since operated separately under the EXMO.me brand.