IDAX Crypto Exchange CEO has 'Gone Missing;' Withdrawals Halted

Digital asset Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term IDAX Global has posted an “urgent” announcement alleging that its CEO has disappeared. The exchange is suspending withdrawals and deposits as a result of the situation. According to some sources, the exchange is allegedly based in Shanghai, but its Twitter location is listed as Mongolia. Six months ago, the exchange described itself as "the FIRST centralized exchange who has integrated the Binance Chain in the crypto currency world."

“IDAX Global CEO have gone missing with unknown cause and IDAX Global staffs were out of touch with IDAX Global CEO,” an official blog post from the exchange reads.

According to local sources pic.twitter.com/I7mjHmns3h

— Matthew Graham (@mg0314a) November 29, 2019

”It is recommended that you refrain from using our all platform services.”

“For this reason, access to Cold wallet which is stored almost all cryptocurrency balances on IDAX has been restricted so in effect, deposit/withdrawal service cannot be provided.”

The exchange also recommended that users stay away from its ecosystem for the time being. “IDAX Global is drawing up an emergency plan about platform services including deposit/withdrawal service so it is recommended that you refrain from using our all platform services.”

Troubled rumors emerged earlier this week

IDAX also explained that it was working on getting ahead of the situation before rumors spiral out of control. “IDAX Global is doing its best to try to grasp variety of news and current situation exactly including rumor on internet community, (sic)” the post said.

Indeed, reports began circulating earlier this week that IDAX’s CEO was “on the run” and that the exchange was in the process of pulling an exit scam. The rumors appear to have been triggered in part by users’ trouble with withdrawing assets from the exchange.

BlockLike reported earlier this week on WeiXin.qq.com that “the founder of IDAX platform Lei Guorong lost all user assets on November 22.” (Translated quote.)

“Assets may be lost and the CEO hid. Among the employees nobody knows about his whereabouts except the boss’s confidant connecting through external channels.” (Translated quote.)

Individuals familiar with the matter told BlockLike that “the platform has fallen short, the cold wallet has been taken away by the CEO, a large amount of platform coins and user assets have fallen short, and the server has been shut down a lot...the (platform currency) distribution system works with outside Taiwan." (Translated quote.)

News of disappearance follows acknowledgment of withdrawal “congestion,” discontinuation of service to Chinese users

The announcement of the CEO’s disappearance comes five days after the exchange abruptly announced that it would no longer be serving users in China “due to policy reasons” and that withdrawals had slowed due to the fact that the “channel that causes the withdrawal of the mainstream currency is in a congested state.”

This is a developing story. Finance Magnates reached out to IDAX Global for commentary but did not hear back before press time. Comments will be added as they are received.