IDAX exchange halts operations amid CEO’s disappearance

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Asian crypto exchange IDAX has halted deposit and withdrawal services after its CEO mysteriously disappeared amid rumors on social media about misappropriated customer funds.

The exchange announced in a blog post that it suspended some operations after its staff was unable to make contact with the global CEO. As a precaution, the company’s cold wallet was placed on lockdown to protect user funds, according to IDAX. The exchange hasn’t stated the value of cryptocurrency held in its cold wallets.  

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. IDAX Global is doing its best to try to grasp a variety of news and current situation exactly including rumor on the internet community.

The alert comes just days after two announcements on Nov. 24, notifying users that the exchange would suddenly no longer service users in China due to policy reason and that withdrawals had increased dramatically, causing delays in processing as the channel had become congested. 

IDAX is reportedly still trying to get a hold of the situation and understand what is going on. Staff members say they are drawing up an emergency plan, but no timeline has been given regarding the emergency plan or when services can expect to be back online. Staff members have advised all users to refrain from using its platform and services for the time being.

IDAX’s official website states that the exchange was founded in Mongolia by the Global Blockchain Research Center (GBC) in 2017. The GBC’s website also lists IDAX exchange as one of its businesses.  Public information also shows that the exchange is connected to the Shanghai-based company Nianxiang Group owned by Lei Guorong.  Nianxiang website confirmed its overseas business unit owns the Global Blockchain Research Center.