Digital Wallet

Story: EXMO Exchange Shuts Down After UK Sanctions Freeze 29.4% of User Funds

By Sydney TheCMO

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Where the Shortfall Comes From. It's not just the sanctions doing the damage. EXMO was hacked back in December 2020 — a hot wallet…

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The USDRecover Token Explained. To handle the gap, EXMO created a new token: USDRecover, ticker USDRec.

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Operational Disruptions Keep Stacking Up. Several transaction-processing services have been suspended because of the sanctions.

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EXMO.com is closing. The exchange announced an orderly wind-down after the UK added EXMO Exchange Limited to its Russia sanctions list on May 26, 2026, a move the platform is…

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The sanctions are part of a broader UK action targeting what officials call the "A7 network" — a cluster of crypto businesses accused of propping up Russia's war economy.

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That number is pretty alarming on its own.

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It's not just the sanctions doing the damage. EXMO was hacked back in December 2020 — a hot wallet breach that the exchange never fully recovered from.

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That combination is what's driving the 29.4% shortfall figure.

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There's also a messier backstory. EXMO had previously tried to cut ties with its Russian operations by selling off the Russia-facing side of the business, which was rebranded as…

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To handle the gap, EXMO created a new token: USDRecover, ticker USDRec. Users who can't get their money back right now are getting USDRec tokens instead.

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See also: FCA Cuts £128M in Annual Costs for UK Asset Managers Through Reporting Overhaul

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Can't trade it. Can't withdraw it. It's purely a debt instrument sitting in users' accounts until something changes.

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Withdrawals of other assets are still going through, but slowly. Processing times have stretched to several days.

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There's a verification hurdle too. Users need to be fully verified to withdraw, and some accounts may face extra identity checks.

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Several transaction-processing services have been suspended because of the sanctions. That's part of why withdrawal fees might climb — EXMO is absorbing higher operational costs…

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