As the government clamp down on digital assets exchanges in China continues to apply pressure, one exchange in particular seems to have more problems coming from over the horizon. After making an announced that it would be closing down its mainland China operations -due to the hostile nature of China’s regulatory landscape – the Shanghai based IDAX (International Digital Assets Exchange) spooked the cryptocurrency markets when a backlog of withdrawals seem to trouble the exchange’s system.
This was followed by rumours of the company’s CEO having gone missing with the exchange’s cold storage private keys, which IDAX worked promptly to try dispel. However, today the troubled exchange posted an “urgent” announcement regarding the situation.
“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.” Reads a portion of the exchange’s post.
This is particularly troubling news for IDAX, as rumours of a possible exit scam had already been circulating on social media platforms days before this latest revelation. Initially sparked by user’s fears about the withdrawal situation, these negative sentiments are likely to intensify over next few days. At this point in time, there has been no clear plan of action released by the exchange.
“IDAX Global is doing its best to try to grasp variety of news and current situation exactly including rumours 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.” as per the IDAX post.
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