IDAX exchange announced to lock cold wallet while CEO “suddenly disappeared”, traders bedeviled

In recent times, there have been many unconfirmed rumors surrounding IDAX (International Digital Asset Exchange) about the exchange’s CEO disappearing along with the exchange’s private key to open the cold storage of the exchange.

On Weibo, a story emerged that IDAX is currently insecure and could be the next scam in this area. It is known that IDAX has fired many employees and the rest cannot access the CEO. The news has yet to identify the CEO, as the company has several branches.

In addition, it was not determined what type of assets stored in the exchange’s cold wallets were taken. Rumors of the scam were exacerbated by social media, quickly aroused panic throughout the online community.

The truth or a cover-up?

After getting the crypto community up for trouble with withdrawals, today the official IDAX blog announced it will lock a cold wallet to ensure the security of crypto assets on the exchange.

“Since the announcement on November 24 about the CEO of IDAX Global went missing and the company still cannot contact him. For this reason, the right to restrict access to the cold wallet which stores almost the entire balance on the exchange officially takes effect. We are unable to offer deposit/withdrawal services at this time,” the post read.

IDAX also added that they are trying their best to catch up on all the news including social media rumors. This action shows that the exchange is still listening for information to find its CEO.

It is urgently planning on services for the platform including deposits and withdrawals, as well as advising users “not to use all of our platforms right now”, the exchange said.

IDAX closed

Source: IDAX screenshot

The post does not specify whether CEO Lei Guorong has a password for cold wallet access, nor does he warn traders at risk.

Three days ago, AZCoin News reported, the largest crypto exchange of South Korea UpBit had stirred up public opinion when it was hacked and lost 342000 ETH (nearly $ 50 million) in just a blink of an eye. This makes Upbit the largest exchange to lose ETH and one of the seven biggest hacks this year.

Scam, Fraud, Ponzi is always the most sensitive and discussed topics in the crypto space. The recent and now Upbit hack of IDAX has raised the alarm for everyone about the dangers of storing your cryptocurrency on an exchange.

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