After IDAX Exchange decided to close its operations in China, many users quickly began moving their digital assets around. The company itself decided to go into restructuring and fired many employees as well. Rumors began spreading that the crypto exchange was doing an Exit Scam, with some users reporting that Telegram admins had stopped given answers and that the withdrawal orders were not executing. The situation has been clarified by the exchange now, confirming that all operations have been suspended for an indefinite time.
Shortly after UpBit confirmed it had been hacked, reportedly losing 342,000 Ether (ETH), the Chinese cryptocurrency exchange IDAX has announced the suspension of all deposits and withdrawals after its CEO allegedly disappeared. According to an urgent announcement published on IDAX, Lei Guorong, CEO of the company, has gone missing. The International Digital Asset Exchange, based in China, reportedly carried more than $763 million in 24 hours for the past few days.
The crypto exchange immediately went into lockdown after seeing a run of withdrawals and has now restricted access to its cold wallets. The whereabouts of the CEO are unknown at this time. IDAX Global staffs have tried to reach Guorong unsuccessfully through the last few days. It appears the CEO took the private keys for cold wallets with him.
Luckily for IDAX users, most of the digital assets are stored in cold wallets, which access has been restricted to a few authorized parties only, with all deposits and withdrawals immediately being suspended.
The scene is becoming more complicated in China, after authorities began banning trading operations last week. Although, according to another announcement made by IDAX, the company had already decided to stop serving Chinese users not too long ago. It’s unclear how long operations will remain suspended, but it is recommended for users to continue following IDAX for future announcements and further information on the matter.