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China’s IDAX Crypto Exchange Locks Cold Wallet As CEO ‘Goes Missing’

IDAX, a Chinese cryptocurrency exchange has suspended deposits and withdrawals after its CEO allegedly disappeared.

On Nov. 29, IDAX published in a blog post that the exchange warned it was seeing a run on withdrawals as the whereabouts of Lei Guorong were currently unknown. 

IDAX Global suspends deposits/withdrawals as its CEO has gone missing. The company was allegedly based in Shanghai — Larry Cermak (@lawmaster) November 29, 2019

Cold Wallet Was On Lockdown To Protect User Funds

The blog post read:

“Since we have announced the announcement on November 24, IDAX Global CEO have gone missing with unknown cause and IDAX Global staffs were out of touch with IDAX Global CEO.”

The company stated that as a precaution, the company’s cold wallet was on lockdown to protect user funds:

“For this reason, access to Cold wallet which is stored almost all cryptocurrency balances on IDAX has been restricted so in effect, deposit/withdrawal service cannot be provided.”

IDAX did not directly link Lei with cold wallet access, nor did it suggest that users’ money was specifically at risk.

Exchanges In China Feeling Pressure

Recently, the Chinese technology capital of Shenzhen issued a warning against illegal activities related to cryptocurrencies.

The news was followed by a total of 39 cryptocurrency exchanges in China identified by the authorities in Shenzhen failing on China’s cryptocurrency trading ban. Reports claim that the exchanges operating illegally in China will face the consequences of a joint government effort to expel them.

Source: IDAX | Cointelegraph | Image: The Cryptonomist



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