The staff at the crypto-exchange IDAX Global announced on their website that they had suspended access to their Cold Wallet after the disappearance of their CEO.
The news comes six days after the Chinese exchange announced the congestion of their IDAX mainstream currency withdrawal channel, as a result of increased demand for IDAX withdrawals.
IDAX becomes another cryptocurrency exchange for suspending deposit and withdrawals following the announcement by Upbit to suspend transactions after a hacking attack that resulted in the theft of $50 million worth of ETH.
The suspended IDAX Cold wallet stores almost all cryptocurrency balances on the exchange. The exchanged has apologized to its affected customers for the current indefinite situation:
“IDAX Global is drawing up an emergency plan about platform services including deposit/withdrawal service, so it is recommended that you refrain from using our all platform services.”
CEO Alleged to Have Gone Missing with IDAX Global’s Cold Wallet Keys
IDAX staff stated in the announcement that the disappearance of their CEO is due to unknown causes. A Chinese crypto media site named Blocklike reported that an insider from IDAX said that the CEO might have run because the exchange was running a deficit:
“The pressure is too great, (CEO) has pitted our employees, and the unsuspecting employees thought it was just a large-scale run, and the platform coin collapsed. Assets may be lost, (CEO) hid. Among our internal employees, [these things] except the boss’s confidant and connecting with external channels, no one knows. “
IDAX’s announcement on 24th November about the withdrawal channel congestion also included a suspension of all services to all users in China. Two days after the announcement, Twitter exploded with reports claiming that services on IDAX were lapsing. One user claimed withdrawals had not been working for days and the crypto community and crypto influencers like Anthony Pompliano were staying quiet about it.
Idax withdrawals have not been working for days now. Why are crypto influencers not talking about it?
— KinggKoinzz (@kryptokingg) November 25, 2019
IDAX’s Story Development Linked to China’ Crackdown on Local Crypto Exchanges
The timeline of the events occurring at IDAX which have left much room for speculation that the events coincide with the latest local crypto exchanges crackdown in China.
Rumours claimed that the authorities raided major cryptocurrency exchanges in China after issuing warnings and notices about a digital currency trading cleanup operation. Major Cryptocurrency exchanges like Binance and TRON were rumoured to be affected but later refuted these claims.
New regulators in Beijing Shanghai and Shenzen reported that a full scale inspection and shutdown of crypto-exchanges was currently going on.
A report by the Japan Times has now mentioned IDAX as part of the more than five crypto exchanges that have announced to have closed down on their websites. The other exchanges include Bitsoda, Biss, Akdex and Btuex.
Since the announcement, the IDAX token is reported to have tanked, with the price crash to zero and the coin reportedly inactive.