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IDAX exchange suspends deposits and withdrawals after CEO disappearance

IDAX exchange suspends deposits and withdrawals after CEO disappearance

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Updated on Mar 11, 2020
Reading time 2 minutes
  • Chinese crypto exchange IDAX recently halted deposits and withdrawals, causing many to worry about their funds.
  • The exchange finally revealed the reason behind the move, admitting that their CEO had disappeared.
  • The CEO supposedly also took the exchange's cold wallets, taking most cryptocurrencies in storage with him.

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China-based IDAX exchange recently stopped withdrawals and deposits without explanation, causing many users to suspect everything from hacking attacks to exit scams. Amid the panic, IDAX finally posted an announcement that revealed what is going on.

https://twitter.com/kryptokingg/status/1198633850756304899

According to the post, the exchange decided to stop most operations due to the disappearance of its CEO. However, the CEO is not the only one who went missing — the exchange’s cold wallets are gone as well, as he allegedly took them with him.

At the moment, the exchange’s representatives appear to be just as confused as the rest of its users, without anyone actually knowing where the CEO is, or why he has disappeared.

IDAX advises users not to use the platform

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While the whereabouts of the CEO and his exact situation remain a mystery, the exchange is trying to take control of the situation. It already advised users not to use the platform until they can sort out the situation

In the meantime, the exchange is trying to understand what is going on, while drawing up an emergency plan simultaneously.

IDAX did not disclose how much digital money the cold wallets that went missing contained, although they did admit that almost all restricted cryptocurrency balances are gone. At the moment, the exchange does not seem to have a plan on how to proceed, but it also did not provide any timeline in regards to the situation.

It also remains unknown whether any of its services will return, and if so, when. The situation is similar in some aspects to another one from earlier this year, when Canadian crypto exchange QuadrigaCX’s CEO, Gerald Cotten, suddenly passed away. Cotten was the only one who had private keys to the company’s wallets, which resulted in around $134 million in crypto being permanently locked away.

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