Coinflux services frozen on heels of CEO’s arrest

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CoinFlux, who boasts as the leading digital currency exchange service from Romania, is having a really bad week.

According to several Romanian sources, Vlad Nistor, the CEO of Coinflux, was arrested by local law enforcement on Tuesday, for charges of fraud, computer fraud, money laundering, and other crimes. These charges were made by the U.S. government, and so Nistor is currently going through an extradition process.

The world waited on a response from CoinFlux as to what would happen next. Wednesday brought worse news however, as the official CoinFlux account tweeted: “We are in the unpleasant situation to temporarily stop any digital currency exchanges.”

A blog post on the CoinFlux went on to elaborate, “Unfortunately, our company’s bank accounts have been frozen, situation which affects the CoinFlux wallets as well. We are doing all possible efforts, along with our legal advisers, to make sure everyone who had money deposited in CoinFlux wallets gets it back.”

Concerned customers of Coinflux can put two and two together and have valid concern for worry, as the arrest of Nistor and the sudden freezing of Coinflux accounts are likely to be related.

As Romanian sources report, Nistor is 30 years old, with seven years’ experience in financial markets, most notably work he did previous to CoinFlux as the manager of over €500 million in pension funds. There is no word yet on if the investigation concerns any of those funds.

CoinFlux has offered services to Europeans, although focused mostly on Romanians, since 2015. Before they suspended all services, they were offering trades for Bitcoin Core (BTC), Ether (ETH), Litecoin (LTC), Ether Classic (ETC) and Ripple (XRP), and were advertising special low prices for trades to celebrate their third year anniversary.

Despite their current outlook, the CoinFlux blog indicated that they haven’t given up hope. They wrote “we assure each and every one of [our customers] that we will do everything that’s up to us to fix this unfair situation.”