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China-based IDAX Crypto Exchange Vanishes with $20 Billion as Capital Strand Breaks

Avatar Vincent He

  Chinese cryptocurrency exchange IDAX has been investigated by Chinese police with a few staffs arrested.

The exchange’s CEO has been missing for a few days, confirming rumors that the exchange’s capital strand breaks as it is trapped into the loss crisis of P2P lending.

Thousands of users from all over the state gather in Shanghai to safeguard their rights. Some victims wrote a letter of accusation to require the police’s attention in Shanghai.

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The former official welfare WeChat group of IDAX has become a rights safeguard group for victims. It is said Lei Guorong, the CEO of IDAX and the previous group administrators have withdrawn from the group.

Some former employees of IDAX said that “My salary, reimbursement and mainstream cryptocurrency are gone as well as the platform token IT “.

At present, the offices of IDAX in Shanghai’s Pudong and Bund have been emptied. ” The office in Shanghai’s Bund has been cleaned with nothing left. The dust on the table indicates that they have been away for a long time and were well-prepared for it. ”

IDAX official claims itself has been authorized digital currency transaction financial license by the Mongolian government as well as a number of policy support from the country and the company is headquartered in Mongolia, which means that it is not compliant for IDAX to run the exchange business in China’s Shanghai as it involves serious ICO activities.

On June 18, IDAX launched the platform token lockdown plan, with a monthly income of up to 20%. In fact, the so-called lockup plan is to deposit token and generate interest (interest is platform token), including current and regular deposit. In addition, the platform will reward user invitation behavior. Different users, different it holdings, different number of recommended users are divided into corresponding levels. Obviously, the main purpose of the whole mechanism is to encourage users to attract more users to hold its platform token IT.

The reason why the platform token IT will dump may be related to P2P deficit. P2P-related companies owned by IDAX’s CEO were trapped into loss crisis, thus being unable to maintain the operating expenses of the IDAX platform.

Many projects in South Korea have been involved in the incident as some projects in South Korea have launched their cryptocurrency on IDAX. It is said that they will be sentenced to at least 20 years in prison if they are arrested.

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