On November 24, IDAX announced that Chinese clients would no longer be able to access its services due to policy issues. However, users in other nations would still be able to access the exchange. This seemed reasonable and most of its users remained calm.
However, about two days later, posts on social media revealed that users were unable to access the exchange’s withdrawal feature. One user of the exchange made a tweet encouraging influencers in the crypto space to discuss the issue.
On November 26, a Chinese media outlet revealed that its sources indicated that the CEO of IDAX had gone AWOL after it was revealed the exchange was operating on a deficit. In the report, it is alleged that someone within the exchange had corroborated this story. However, the employee added that no one was sure of the exact details of his disappearance.
On November 29, IDAX confirmed that their CEO was missing. Due to this fact, the exchange said that it would stop all withdrawals and deposits from the exchange. It also revealed that almost all of the exchange’s crypto was stored in a cold wallet.
Why He Went Missing
Until now, there is no clarity on why the CEO went missing. Some speculate he may have been arrested while others believe it was part of an exit scam. However, many are pointing to the renewed efforts by Chinese authorities to crack down on crypto trading.
The exchange was based in Shanghai, which is China’s economic center. This matters since the Shanghai branch of China’s central bank recently revealed that it was still against the use of crypto. The bank issued a statement saying that it had noted an increase in crypto via ICOs, IEOs, and STOs. In its statement, the bank concluded by saying that trading in crypto was still illegal.
Considering the recent statement by the PBoC and the disappearance of the CEO, it is easy to conclude why some believe authorities may have detained him. However, this is mere speculation. As more details emerge, it will become clear whether this was an exit scam or he has been detained by the authorities.