IDAX CEO Likely Ran Away With The Exchange’s Cold Wallet

Allegedly the IDAX CEO has run off with the cold wallet of the company and all employees are fired or had left, and the exchange’s token fell to $0 as we are reading further in the latest crypto news.

Implying that the exchange pulled an exit scam, Blocklike reported on Weibo.com rumors of chaos at IDAX the Mongolian trading platform. Blocklike cited unnamed insiders, allegedly the IDAX CEO has fled the company taking the cold wallet with him as it can be read from the translated reports:

“Assets may be lost and the CEO hid. Among the employees nobody knows about his whereabouts except the boss’s confidant connecting through external channels.”

Allegedly the CEO Lei Guorong has not been in contact with any of the people employed in the company since the 26th of this month.

On the page of the IDAX company, there is a warning about fund withdrawal restrictions, whilst the CoinMarketCap shows an exchange volume of nearly $800 million in the previous day. On the website of IDAX it was posted an announcement saying that a high volume of “withdrawal request traffic” jammed the platform and asked for the users’ patience. After a while, the company declared that it would no longer provide service to users in China for “policy reasons”.

The only crypto exchange based in Mongolia, launched in December of 2017, has its main office located in Ulaanbaatar, in the GBC High-Tech Industrial Park. On November 22nd a Romanian media and information outlet, Coindoo.com gave the firm a rating of 4.5/5, because of a diverse selection of the coins. But they warned that “[IDAX] has a murky regulatory situation, as the exchange is under Mongolian regulation.”

There is still a Telegram and Twitter account and an active website of the company. Three days ago IDAX, celebrated its two years anniversary and tweeted promotional material offering a 20% discount on “Slat” token. There were certain reports that the chaos is just FUD and that the market is overreacting to media hype. The exchange claims that the regulatory pressure is the source of the system overload arousing the huge number of users to move its funds thus overloading the system.