The IDAX exchange team announced the suspension of deposits and withdrawals through the company’s wallets as they do not know the whereabouts of the CEO.
The China-based IDAX exchange team asked its customers to stop using their services since the company’s CEO disappeared and they are unaware of their whereabouts.
In a statement sent to customers today, the platform indicated that for the moment it would suspend access to all cold (offline) wallets in which most of the cryptocurrencies managed by the exchange are stored, so deposits and withdrawals are suspended
The exchange expressed:
“We recommend that users refrain from using all our services on the platform.”
This announcement comes after the suspension of operations to users resident in China, which resulted in congestion of deposits and withdrawals for crypto funds on the platform.
A similar situation had already been seen with QuadrigaCX
Some analysts point out certain similarities between the current situation of IDAX and what happened with the Canadian QuadrigaCX exchange, which closed its doors after the death of the CEO of the company, who was the only one who managed the private keys of the crypto wallets associated with the platform.
In the case of QuadrigaCX, what happened with the exchange led to certain doubts about the veracity of the events, as some reports suggest that the funds housed in the platform’s wallets were subtracted. Since then the platform dealt with certain liquidity problems, so the thesis of the death of the CEO seemed to be an easy way out of the legal problems that would arise from this situation.
Some clients fear that after the disappearance of the IDAX CEO, the funds will remain permanently inaccessible, so they expressed their concerns through the official channels of the platform asking the team to enable the withdrawal of funds again.
An interesting aspect in this case is that none of the official IDAX documents contain data related to the identity of the CEO of the company, so it is an unknown person in the community who allegedly has certain links with other companies in the ecosystem Crypto in Shanghai.
IT Token Presale
An important fact was that IDAX carried out a pre-sale campaign earlier this year for its ERC-20 token called IDAX Token (IT), which issued 200 million units.
The reports issued by IDAX do not account for the total number of IT traded, but indicate that the price of the digital currency would be set at USD $ 0.2 per unit.
In the White Paper of the token, the team informed that 60% of them would be ready for commercialization among those interested, 10% would remain for the exchange, while the remaining percentage would be distributed between the exchange and financing to promote growth of the IDAX ecosystem.
At the moment it is not clear if the exchange will resume its operations normally in the next few days, or if the case merits the participation of local authorities to protect the rights of the affected people.