and the distribution of digital products.
IDAX Exit Scam? Users Face Withdrawal Difficulty
The IDAX CEO has allegedly run off with the cold wallet of the exchange, all employees have left or have been fired, and the platform’s token dropped to $0.
Blocklike reported on Weibo.com rumors of chaos at the China-based trading platform IDAX suggesting the exchange pulled an exit scam. Blocklike, citing unnamed insiders, the CEO of IDAX has allegedly fled the company taking the cold wallet with them. A rough translation from Blocklike’s sources added:
“Assets may be lost and the CEO hid. Among the employees nobody knows about his whereabouts except the boss’s confidant connecting through external channels.”
The founder, Lei Guorong, has allegedly not been in contact with any employees since November 26, 2019.
CoinMarketCap shows exchange volume of nearly $800 million in the past day, but a warning about fund withdrawal restrictions is posted on the IDAX page. On Nov. 23, IDAX posted an announcement on their website claiming that a high volume of “withdrawal request traffic” has congested the platform and asked for user’s patience. Shortly after, the exchange announced it would no longer provide service to users in China for “policy reasons.”
IDAX, which launched in December, 2017, is the only crypto exchange based in Mongolia, with its main office located in the GBC High-Tech Industrial Park in Ulaanbaatar. On Nov. 22, Coindoo.com, a Romanian media and information outlet, gave the exchange a rating of 4.5/5, citing “a diverse selection of coins” as one reason for the high approval rating. They did, however, caution that “[IDAX] has a murky regulatory situation, as the exchange is under Mongolian regulation.”
The company still has an active website and a Twitter and Telegram presence. As recently as three days ago, IDAX celebrated its 2 year anniversary, as well as tweeted promotional material offering a 20 percent discount on “Slat” token. The most recent is a pinned tweet, dated Nov. 10, thanking users and partners for their “great support.”
Happy IDAX 2nd Anniversary!!