January 28, 2023

IDAX CEO disappears with cold wallet access

Over the past week, messages about problems with the withdrawal of funds to IDAX cryptocurrency exchange. As it turned out, most of them were confirmed.On the eve of the morning, the company published "urgentnotification ”, in which she said that the site’s general manager has“ disappeared ”, and, accordingly, access to the cold wallet, on which almost all cryptocurrency is located, has been lost. Because of this, the process of depositing and withdrawing funds had to be suspended.

“The CEO of the company disappeared for unknown reasons. IDAX Global employees are unable to contact him, ”the company said in a statement.

Six months ago, IDAX claimed to be “the firstcentralized platform ”, which introduced Binance Chain to the cryptocurrency world by listing BEP2 tokens. According to sources, the exchange is based in Shanghai, although Mongolia appears in its Twitter account.

Earlier this week, messages appeared on the network,that the IDAX CEO deliberately hid along with the private keys to the exchange’s cold wallets. Around the same time, it became known about the problems with the withdrawal of funds. The following information appeared in the Chinese media:

"IDAX founder Lei Guoronglost all the assets of its users on November 22. At the moment he is hiding. “None of the employees knows his location, and he only contacts using confidential communications using external channels.”

Representatives of the exchange promised to sort outsituations, but for now they advise you not to use the company's services, and also report that you are aware of the spread of various news and rumors on the Internet. The Block analyst Larry Cermak suggested that the founder of the exchange could be arrested in Shanghai.

Earlier, IDAX announced the departure from US markets andCanada due to regulatory restrictions, and five days ago, the exchange stopped providing services to Chinese users because of “political motives”, noting that the platform is operating normally in other jurisdictions.

Shortly before that, the company reported thatwithdrawal problems are associated with a sharp increase in the number of requests. According to CoinMarketCap, before the problems IDAX was in the top 15 in terms of adjusted trading volume.