EXMO wind-down has started after the exchange said UK sanctions froze part of its user assets and forced it to scale back operations. The company said it disputes the sanctions, but it is working with authorities. Meanwhile, it stopped new account sign-ups, new deposits, and new trading positions. Users can still close existing positions.
The move follows a May 26, 2026 action by the UK’s Foreign, Commonwealth and Development Office. It added EXMO Exchange Limited to its Russia sanctions list with 17 other entities and individuals. Those named included HTX, formerly Huobi, Bitpapa, and Rapira Group. UK authorities said the package targeted the A7 network.
EXMO Wind-Down Cuts User Balances
EXMO said 29.4% of its total obligations to users cannot now be returned. It linked that gap to two issues. First, it still has not recovered funds lost in a December 2020 hot wallet hack. Second, custodians, banks, and payment providers froze more funds after the May 2026 sanctions.
To cover that shortfall, EXMO cut every client balance by 29.4%. It then issued a new token, USDRecover, or USDRec, for the same amount. The exchange described the token as a claim on any assets it may recover later. However, users cannot trade or withdraw the token.
The 2020 hack took about 5% of the exchange’s total assets, according to the company. EXMO said it published wallet addresses tied to the theft and reported the case to UK police. It also said analytics firm Crystal later traced the stolen funds through exchanges including Poloniex and Binance, but the assets were never recovered.
Withdrawals Stay Open for a Limited Period
The platform will remain online for a limited time so clients can withdraw remaining funds. EXMO said it is handling requests in the order received. However, processing now takes several days because operations have been disrupted. Users must be fully verified, and some may need extra identity checks.
Asset conversion between currencies remains available to help users move into assets they can withdraw. However, EXMO warned that liquidity and pricing may not act normally across all pairs. Withdrawal fees may also rise because some providers suspended transaction services after the sanctions.
Separately, TRM Labs said EXMO had previously stated it left the Russian market after the 2022 invasion of Ukraine by selling its Russia-facing business under the Exmo.me brand. TRM’s on-chain analysis reportedly found that the two platforms kept sharing custodial wallet infrastructure after that split.
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Source: Finance Magnates
