IDAX, a Chinese cryptocurrency exchange, has suspended deposits and withdrawals after its CEO allegedly disappeared in what looks like an exit scam.
In a blog post earlier today, IDAX said it was suspending all activity on the exchange after staff said they had been unable to contact their CEO, Lei Guorong, since November 24. As a result, the exchange has also lost access to its cold storage. IDAX initially denied that the disappearance was an exit scam; however, in another statement today, it has confirmed that this is indeed the case. An exit scam is a fraudulent practice by unethical cryptocurrency promoters who vanish with investors’ money during or after an ICO.