IDAX.pro CEO goes "missing". Customer funds locked up in the exchange.

[logfiles]

Another day, another form of bad news for some crypto traders. This is another one of those reminders that one should not keep their funds in an exchange.

It's said that the CEO's whereabouts are unknown from the time they made an announcement citing an abnormal increase in withdrawals from the exchange 5 days ago

Dear IDAX users:

Recently, the demand for IDAX withdrawals has increased dramatically. The channel that causes the withdrawal of the mainstream currency is in a congested state. IDAX is reviewing the user's withdrawal requirements, please wait patiently.

Source: https://idax.zendesk.com/hc/en-us/articles/360036736211-Announcement-of-IDAX-withdrawal-channel-congestion

As of now, users can not deposit or withdraw as the "cold wallet" has been restricted according to an announcement they made today

Dear user,

Following the official announcement "Announcement of IDAX withdrawal channel congestion" on November 24, We announce Urgent notice about current situation of IDAX Global.

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.

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 Global is doing its best to try to grasp variety of news and current situation exactly including rumor on internet community.

IDAX Global is drawing up an emergency plan about platform services including deposit/withdrawal service so it is recommended that you refrain from using our all platform services.

Source: https://idax.zendesk.com/hc/en-us/articles/360037327571-Urgent-announcement-about-current-situation-of-IDAX-Global


Honestly I think there is more into this story than just "a locked down cold wallet" just because the CEO's whereabouts are unknown. It could even be a planned exit scam.

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[alyssa85]

Honestly I think there is more into this story than just "a locked down cold wallet" just because the CEO's whereabouts are unknown. It could even be a planned exit scam.

On the 24th November, a user posted the following tweet:

https://twitter.com/kryptokingg/status/1198633850756304899

#idax exit scam?  Withdrawals are not processed.  Admins are not replying on telegram. Mails are not replied. This has been going on for days.  #cryptocurrency #bitcoin #ethereum $btc

IDAX is a chinese exchange and China banned exchanges two years ago, and they've been going around in recent months raiding exchanges that were breaking the law and still operating.

[audaciousbeing]

This is really another bad news that has just fail to abate in the crypto sphere. I can't imagine how company that have access to people funds all over the globe are saying because their CEO cannot be reached so the company will go down, its just one of the most ludicrous reasons any one can think of. Its like saying because Mark Zukerberg is unreachable then Facebook, WhatsApp and Instagram will have to shut down? It just does not make any reasonable sense and this will continue to give people the point in arguing against the adoption of crypto. To those who have funds on that platform, its best to say start think of counting your losses and move on...

[Digital_Lord]

So I assume that it's another scam from another so called top exchange. I don't think the CEO will ever get found back. he is most probably ran away by himself with the core wallet keys. if he did that without his rest of staff's involvement then they should help the Authorities to track him down. otherwise they could not find him ever.

Honestly I think there is more into this story than just "a locked down cold wallet" just because the CEO's whereabouts are unknown. It could even be a planned exit scam.

On the 24th November, a user posted the following tweet:

https://twitter.com/kryptokingg/status/1198633850756304899

#idax exit scam?  Withdrawals are not processed.  Admins are not replying on telegram. Mails are not replied. This has been going on for days.  #cryptocurrency #bitcoin #ethereum $btc

IDAX is a chinese exchange and China banned exchanges two years ago, and they've been going around in recent months raiding exchanges that were breaking the law and still operating.

so do you think he got arrested?

[OmegaStarScream]

This actually reminds of QuadrigaCX, where the CEO died (or so they claim).

So in addition to Upbit hack a couple of days ago, we have this incident now. Are people ever gonna learn that centralized exchanges are not part of the solution?

[LeGaulois]

This actually reminds of QuadrigaCX, where the CEO died (or so they claim).

Same here but honestly I don't buy the story in OP, I don't believe the CEO is suddenly gone. In a company, where you manage client funds on top of that, it makes so much sense to give funds' access to more than one person. No idea how a CEO can forget that point.
if you give a 10-year-old child two keys to a house, he'll be smart enough to give one to someone just in case

Also, there is something about the cold wallet. They didn't use S (cold wallet). I don't think it's something popular for an exchange to have only 1 cold wallet.

[dunfida]

This actually reminds of QuadrigaCX, where the CEO died (or so they claim).

So in addition to Upbit hack a couple of days ago, we have this incident now. Are people ever gonna learn that centralized exchanges are not part of the solution?

We've been keeping to tell advises that we shouldnt trust 100% these CEX's but people do still really likes to use it up but to think we dont have any options to take specially
if we do tend to trade or convert it to fiat which DEX isnt really capable on this one.

Further more a recent announcement came from IDAX https://idax.zendesk.com/hc/en-us/articles/360037327571-Urgent-announcement-about-current-situation-of-IDAX-Global
So the issue here is  that where the heck those IDAX Global staffs been lurking.? 

[Potato Chips]

It's weird for me that they waited for 5 days to halt the deposits and withdrawals. No matter how busy a person is, it's strange to not get ahold of them for 24H especially when you guys are solving an urgent problem together. Anyone would've thought that there is something wrong.

[logfiles]

Also, there is something about the cold wallet. They didn't use S (cold wallet). I don't think it's something popular for an exchange to have only 1 cold wallet.

This is what i was also thinking about sometime back. How the heck can an exchange with a reasonable amount of customer's funds have only one cold wallet according to the announcement? it Doesn't make sense 

Who can be that careless with the recent massive hacks that have been happening even to the biggest exchanges?

This scenario reminds of ponzi schemes when they are attempting to pull of an exit scam after making profits. They start giving funny reasons to users for not being able to withdraw their money like hacks, stuff disappearing, system upgrade etc

[moynul2050]

 
I became one of the victims, the latest news I got from a former IDAX staff member said that the CEO had run away with the Hardware Wallet and the key from the Cold Wallet they had.
now the telegram group I can't even access.

[joniboini]

I became one of the victims, the latest news I got from a former IDAX staff member said that the CEO had run away with the Hardware Wallet and the key from the Cold Wallet they had.
now the telegram group I can't even access.

Blocking people from Telegram group is not going to help them with finding their CEO. So, why bother do that? They're rock bottom now and to be honest, I think it's not as simple as CEO run away with hardware wallet. What a stupid company to put all their funds on the hand of a single person. Either that or they use that as an excuse to exit scam together.

Hopefully investigation can reveal some lights, and people should stop being stupid with their funds.

[moynul2050]

I became one of the victims, the latest news I got from a former IDAX staff member said that the CEO had run away with the Hardware Wallet and the key from the Cold Wallet they had.
now the telegram group I can't even access.

Blocking people from Telegram group is not going to help them with finding their CEO. So, why bother do that? They're rock bottom now and to be honest, I think it's not as simple as CEO run away with hardware wallet. What a stupid company to put all their funds on the hand of a single person. Either that or they use that as an excuse to exit scam together.

Hopefully investigation can reveal some lights, and people should stop being stupid with their funds.

it is true what you say, many people have thought that this was organized and planned crime, many victims did not believe their acknowledgment that the staff had been left by the CEO and they had nothing to do with the CEO.
one by one the staff have left the group and cannot be contacted, it seems that this is indeed a common crime that they have planned very well.

[rosezionjohn]

The last time I have read anything about IDAX, it was an accusation by various projects that the exchange is faking the IEO. During those times, many of its defenders, bots, and zombies cam to the rescue with messages like "I have been using IDAX for a long time and I never had an issue". Where they at now?

[Winstar78]

Nice, I've just become aware I've been scammed for the third time, after Bitgrail, Cryptopia, and now Idax.

I know it could happen and I left not so meny funds there. But it was better not to lose them.

[Jesper30]

Has anyone heared news about it? I've tried to research on my own but I just found some team members at linkedin. Is anyone a step forward?
Thank you.

[logfiles]

Has anyone heared news about it? I've tried to research on my own but I just found some team members at linkedin. Is anyone a step forward?
Thank you.

It was an exit scam so nothing new up to now except more and more people complaining about their lost funds like the comments in this review - https://cryptogeek.info/en/exchanges/idax

[Winstar78]

Well some time ago I figured out there was still millions in tokens in their erc20 wallet. They did not move them. So the loss of the keys could be true.

https://etherscan.io/address/0x3c11c3025ce387d76c2eddf1493ec55a8cc2a0f7

no moves since then