The CEO of a top 25 cryptocurrency exchange been reported missing and has allegedly run off with the cold wallet keys which only he had access to on a personal laptop.
The founder of IDAX, Lei Guorong, has not been in contact with any employees since November 26, 2019.
IDAX published the following statement earlier today:
“IDAX Global CEO has gone missing with unknown cause, and IDAX Global staffs were out of touch with IDAX Global CEO. For this reason, access to the Cold wallet, which is stored almost all cryptocurrency balances on IDAX, has been restricted.”Statement from IDAX website
The platform’s token has since dropped to $0 and there are rumours that there were chaotic scenes leading up to the CEO’s disappearance.
IDAX is a relatively small exchange but still did a $500 million trading turnover in bitcoin over the last 24 hours.
Withdrawals and deposits have been frozen and are still not working after being stopped earlier in the week.
IDAX reportedly left the U.S. and Canada earlier in the year due to tougher regulations and a few days ago confirmed via an announcement that they would no longer be able to serve the Chinese market “due to policy reasons.”
China initiated a nationwide crackdown last week on crypto exchanges and companies that don’t meet stringent new criteria.
The news comes the day after up it was Upbit was hacked for $49 million worth of ether (ETH), although the Korean exchange said it would cover any assets lost with its own funds.￼