IDAX Exchange Freezes Crypto Withdrawal After Its CEO Allegedly ‘Missing' With The Cold Keys

    A crypto exchange based in Shanghai, China has halted its services after its CEO went missing with all the cold wallets keys thereby locking it out of business.

    International Digital Asset Exchange (IDAX) explained in a short notice that it was halting its services after its CEO went missing without prior notice for the last five days. The notice did not issue the specifications of the CEO nor did it explain the reasons why he vanished.

    The exchange also revealed through the notice that it was unable to access its cold wallets which contain almost the entire crypto assets of the exchange. Due to lack of cold wallet keys, the exchange reprimanded its clients from using its services until further notice.

    The announcement follows another notice where the company tried to refute claims that its CEO had gone missing with the cold wallet keys. The crypto exchange firm tried to cool down fears by claiming that it was going through maintenance and would resume its services soon. It appears that its effort to reach out to its CEO have been futile leading to the admission of his vanishing.

    Previously, on Nov 24th, the exchange had alerted its clients of congestion in both withdrawal and deposits and it was about to quit the Chinese market. Currently, it still remains unknown the amount of crypto assets and funds contained in the exchange’s cold wallets. The firm also explained that the rumors of its intended withdrawal of services from mainland China had created a huge backlog of withdrawals leading to delays in services.

    It is still unclear why the anonymous CEO decided to vanish. However, this is a rare occurrence where an exchange’s CEO is given a solitary control and custody of all the cold wallet private keys and traders have not offered custodial promises or a resort.

    Currently, the exchange did not suggest any compensation but said its exploring the situation. However, the IDAX case seems more like the QuadrigaCX heist where its CEO also had solitary control and custody of the private keys.

    The news has led to IDAX token’s value crashing to zero and has since ceased to trade, CoinDesk reports.

    Get Free Email Updates!

    *Action* Enter Best Email to Get Trending Crypto News & Bitcoin Market Updates

    I will never give away, trade or sell your email address. You can unsubscribe at any time.

    Joseph Kibe
    Joseph Kibe
    Joseph is a blockchain and cryptocurrency enthusiast, with a strong conviction that exposure of blockchain technology is for the good of the society. Fascinated by the massive potential of cryptocurrencies and the technology behind them – blockchain – Joseph spent lots of his time learning more about the industry, becoming a polished expert writer in the sector. He covers any cryptocurrency and blockchain related content.

    [Alert] Use the author's self-conducted information at your own risk, do you own research, never invest more than you are willing to lose.

    [Disclosure] The published news and content on BitcoinExchangeGuide should never be used or taken as financial investment advice. Understand trading cryptocurrencies is a very high-risk activity which can result in significant losses. Editorial Policy \\ Investment Disclaimer



    Please enter your comment!
    Please enter your name here


    Live Bitcoin Price & Latest BTC Charts

    Today's Latest Crypto News

    Bitwise Plans To Target Retail Investors With Its Crypto Index Fund

    Bitwise has revealed that plans are underway to allow the retail market to participate in its large-cap index service. According to CoinDesk, Bitwise is working...

    Binance's Educational Platform Opens Up Government Approved Office in Shanghai

    Binance, one of the most popular crypto exchanges in the crypto-verse which also has many subsidiaries including Binance Academy (a blockchain and crypto-centred educational...

    XRP Trying to Retrace Months of Underperformance But Remains in a “Corrective” Structure

    XRP is up 12.5% but could still jump another 23%, A clean break above $0.21 would be “very bullish” Ripple granted an exemption...

    23k BTC on CME Futures and 50k BTC in Options Expiring Today

    Bitcoin is currently down 0.05% in the past 24 hours trading around $6,640 after hitting $6,872 last night, yet again rejected at $7,000 level....

    Microsoft Files Patent To Mine Cryptocurrencies With Verified Body Activity Data

    Giant software manufacturer, Microsoft is seeking to capitalize on the new crypto hype. The firm is seeking to introduce its own cryptocurrency that will...

    BitcoinExchangeGuide is a hyper-active daily crypto news portal with care in cultivating the cryptocurrency culture with community contributors who help rewrite the bold future of blockchain finance. Subscribe on Google News, see the mission, authors, editorial links policy, investment disclaimer, privacy policy. Got News? Contact us, we are human too. Note: nothing here is financial advice, do your own research thoroughly.