Shanghai Firm Crypto Exchange Affiliate Stops Services as CEO Goes Missing

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A Chinese cryptocurrency exchange IDAX requested customers to halt using its services, saying that it’s CEO has gone missing.

 

IDAX released an urgent announcement on Friday where it said that the firm’s chief has suddenly disappeared from an unknown reason for five days.

 

The CEO’s disappearance caused the exchange firm to be restricted from accessing its cold wallets where almost all digital assets are stored. Moreover, withdrawals are also not allowed. The exchange recommended its customers to abstain from using all its platform services.

 

Meanwhile, on November 24, the exchange informed its customers regarding the congestion that was delaying deposits. The exchange also noted that it would no longer deliver services to clients who are based in China.

 

The announcement with regards to the disappearance of the exchange firm’s CEO came just days after the November 24 statement.

 

The reason for the disappearance of the crypto exchange firm’s unnamed CEO remains unknown to the public. However, there are signs that IDAX has cut its connections to a Shanghai-based Chinese firm that has a presence in the city. It was also mentioned that recently, the exchange firm has been taking tougher measures in castigating on digital currency exchanges as well as token sales.

 

IDAX’s Association to Shanghai

 

The official website of IDAX publicized that it was established in Mongolia two years ago (2017) by an entity under the name of Global Blockchain Research Center (GBC). The crypto exchange firm is also listed as one of GBC’s businesses on its website.

Yet, according to some public information, the exchange has ties with Nianxiang Group, a company that is situated in Shanghai, China.

 

The Nianxiang profile page on Sohu, a Chinese news portal, indicates that it is behind the Global Blockchain Research Center.

 

As per the Chinese business registration data, the Nianxiang Group is exclusively owned by an individual under the name of Lei Guorong. The data also showed that the firm is registered in Shanghai. Furthermore, 26 out of 43 individuals that register IDAX as its employer in LinkedIn indicate Shanghai as their current location.

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