IDAX Global CEO Disappears

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IDAX Logo And Homepage

IDAX Global, a Chinese cryptocurrency exchange, faced a crisis when its CEO, Lei Guorong, went missing with unknown causes, resulting in the restriction of access to the exchange's cold wallets. The announcement followed the exchange's withdrawal from the Chinese market and increased withdrawal demands. IDAX advised users to refrain from using its platform services while it formulates an emergency plan. The situation raised concerns and speculation of a possible exit scam. The exchange's website has since gone offline. It is unclear what efforts remain to recover lost funds.

https://grahamcluley.com/cryptocurrency-exchange-locks-its-cold-wallet-as-ceo-goes-missing/

https://en.cryptonomist.ch/2019/11/29/idax-exchange-to-close/

https://www.newsbtc.com/news/what-the-potential-loss-of-millions-of-dollars-from-crypto-exchange-shows-about-the-industry/

http://newsletter.coingecko.com/archive/main_newsletter_list/-IDAX-Locks-Cold-Wallet-as-CEO-Goes-Missing--670.html

https://ihodl.com/topnews/2019-11-29/crypto-exchange-idaxs-ceo-missing-companys-cold-wallet/

About IDAX

IDAX was a Chinese cryptocurrency exchange platform run by CEO Lei Guorong.

“IDAX’s official website states that it was founded in 2017 in Mongolia by an entity called the Global Blockchain Research Center (GBC).” “[T]he website of Nianxiang Group [indicated their] overseas business unit owns the Global Blockchain Research Center.” “According to Chinese business registration data, Nianxiang Group is solely owned by an individual called Lei Guorong and is registered in Shanghai.” “Exactly how much could have been stolen is pure speculation at this point. While little-known in the West, IDAX can’t be called a small exchange. By volume, the exchange was ranked 12th in the world with $757 million traded over a 24-hour period. At the very least, the amount stolen could be in the low millions of dollars but could be as high as hundreds of millions.”

IDAX stated their mission was "to provide a complex and secure digital asset trading service with a great user experience". The IDAX exchange homepage advertised the service as "continually improving out end-to-end security measures" and promised "10 minute" withdrawals.

IDAX (International Digital Asset Exchange) is a cryptocurrency trading platform. Our mission is to provide a complex and secure digital asset trading service with a great user experience.

Dedicated to value preservation

IDAX is designed to service every customers.

Safety - For digital asset trading, security is a top priority.Our team is continually improving our end-to-end security measures to protect your private information. Please refer to our Security policy

Fast - More convenient and stability, 10 minutes withdraw money Professional quantitative backup, 24 hours high withdrawals. Click enter Check Settings

Professional Team - We provide 7*24 hours professional service, unparalleled support, tools and innovation just for you. Professional knowledge

The Reality

This sections is included if a case involved deception or information that was unknown at the time. Examples include:

• When the service was actually started (if different than the "official story").
• Who actually ran a service and their own personal history.
• How the service was structured behind the scenes. (For example, there was no "trading bot".)
• Details of what audits reported and how vulnerabilities were missed during auditing.

What Happened

The specific events of the loss and how it came about. What actually happened to cause the loss and some of the events leading up to it.

https://web.archive.org/web/20180918012135/https://coinmarketcap.com/exchanges/idax/

https://web.archive.org/web/20181228161944/https://coinmarketcap.com/exchanges/idax/

https://web.archive.org/web/20190322012743/https://coinmarketcap.com/exchanges/idax/

https://web.archive.org/web/20200421143808/https://coinmarketcap.com/exchanges/idax/

Key Event Timeline - IDAX Global CEO Disappears

Date	Event	Description
January 27th, 2018 3:57:25 PM MST	IDAX Exchange First Captured	The IDAX.mn website URL of the IDAX exchange is first captured in the Internet Archive.
November 17th, 2018 7:44:22 AM MST	IDAX Exchange First Captured	The IDAX.pro website URL of the IDAX exchange is first captured in the Internet Archive. It's a redirect from the original .mn URL and the title still references the original .mn domain name.
November 22nd, 2019	Lei Guorong Flees With User Assets	According to Alice Crypto, IDAX CEO Lei Guorong reportedly flees with all remaining platform assets. The exchange and most other sources have given a date of November 24th.
November 23rd, 2019 11:49:51 PM MST	IDAX Announces Withdrawal Congestion	IDAX announces that "the demand for IDAX withdrawals has increased dramatically. The channel that causes the withdrawal of the mainstream currency is in a congested state. IDAX is reviewing the user's withdrawal requirements, please wait patiently."
November 24th, 2019 3:38:56 AM MST	IDAX Announces Closure In China	IDAX announces that their "official website and APP will no longer serve users in China due to policy reasons" and notes that "other countries users can use IDAX exchange". They "apologize for any inconvenience".
November 24th, 2019	Lei Guorong Disappearance	According to IDAX's official announcement, the "exchange stated that its CEO went “missing with unknown cause” since 24 November". "Since we have announced the announcement on November 24, IDAX Global CEO have gone missing with unknown cause and IDAX Global staffs were out of touch with IDAX Global CEO."
November 28th, 2019 10:03:15 PM MST	IDAX Announces CEO Disappearance	IDAX publishes an announcement on their website about the CEO's disappearance. "Since we have announced the announcement on November 24, IDAX Global CEO have gone missing with unknown cause and IDAX Global staffs were out of touch with IDAX Global CEO."
November 28th, 2019 5:12:00 AM MST	Alice Crypto Twitter Post	Twitter user Alice Crypto posts on Twitter to warn that "well-informed source says, IDAX platform trading system cannot operate normally. Lei Guorong, founder of IDAX, is lost on Nov 22 with all user assets." Their tweet includes a reference to a Chain News article which has since been taken offline.
November 28th, 2019 11:14:09 AM MST	The Times of Crypto Article	An article is published by The Times of Crypto about the situation. TBD need to fill in more details.
November 29th, 2019 2:13:33 AM MST	Bitcoinist Article Published	Bitcoinist publishes an article on the IDAX situation. TBD fill in details.
November 29th, 2019 3:07:00 AM MST	CoinTelegraph Article Published	CoinTelegraph published an article on the IDAX situation. TBD need to fill in more details.
November 29th, 2019 3:21:00 AM MST	Blockchain & Cryptocurrency News Blog Article	A new post is made on a "Blockchain & Cryptocurrency News" blog. TBD fill in a more thorough description.
November 29th, 2019 3:37:02 AM MST	BeInCrypto Article Published	BeInCrypto reports that IDAX Global, a cryptocurrency exchange, has announced that its CEO has gone missing, leading to the restriction of access to its cold storage solution. The announcement comes after the exchange withdrew from the Chinese market, citing "policy reasons." Rumors of an exit scam circulated on Weibo.com before the confirmation, with speculation that the company had fired numerous employees, leaving those remaining unable to contact the CEO. IDAX has now stated that it is forming an emergency plan to resume customer deposits and withdrawals. The situation draws parallels with the Quadriga CX case, emphasizing the importance of not relying on centralized, unregulated exchanges for cryptocurrency holdings.
November 29th, 2019 4:18:14 AM MST	TheNextWeb Article	TheNextWeb reports that IDAX, a relatively small cryptocurrency exchange, has suspended deposit and withdrawal services after its CEO went missing, taking access to the company's cold wallets. The exchange, which reported about $500 million worth of Bitcoin trades in the past 24 hours, compared to larger exchanges like BitMEX, is currently trying to understand the situation. IDAX is formulating an emergency plan and has urged users to refrain from using its platform and services. The value of cryptocurrency held in its cold wallets hasn't been disclosed, and there's no timeline for the resumption of services. The situation is reminiscent of the QuadrigaCX case earlier this year.
November 29th, 2019 5:38:16 AM MST	Saturn Network Blog Post	A detailed post is made on the Saturn Network Blog with information about the situation. TBD fill in details. Lots more timeline information here.
November 29th, 2019 6:36:52 AM MST	Inside Bitcoins Article	Inside Bitcoins publishes on the IDAX situation. TBD fill in more details.
November 29th, 2019 8:00:19 AM MST	BTC Manager Article	BTC Manager publishes an article about the situation. TBD fill in more details.
November 29th, 2019 9:00:39 AM MST	Coin Rivet Article	Coin Rivet publishes an article on the situation. TBD details. This article is then recopied to Yahoo Finance.
November 29th, 2019 12:40:29 PM MST	Buttcoin Reddit Post	The Buttcoin Reddit community publicizes the events, joking that the CEO is "sippin cocktails with Gerry Cotten".
November 29th, 2019 10:44:24 PM MST	CryptoKnowmics Article	CryptoKnowmics publishes that the International Digital Assets Exchange (IDAX) has confirmed reports of its CEO going missing since November 24, resulting in the restriction of access to its cold wallets. The exchange stated that it is setting up an emergency plan for its services, urging users to refrain from using any of their services until further notice. The announcement raised concerns among Twitter users, with some speculating that it might be an exit scam. Despite IDAX's claims, there is no solid evidence to support the situation, and unconfirmed rumors suggest that employees have been notified of the loss of user data. The development comes after the exchange announced on November 24 that it would no longer offer services to users in China following notices from the People's Bank of China about the closure of several exchanges in the country.
December 1st, 2019 6:37:05 PM MST	Silicon Angle Article	The situation is published about online in Silicon Angle. TBD fill in more details from this article.
December 2nd, 2019 3:10:42 AM MST	Bitboy Crypto Article	Bitboy Crypto publishes an article on the exit. TBD get more details.
January 8th, 2020 4:30:00 PM MST	Cryptopolitan Article	Cryptopolitan reports on the IDAX situation, and compares it with the Quadriga Coin Exchange situation. TBD more details.
February 10th, 2020 10:04:35 AM MST	CipherTrace Includes IDAX In Q4 2019 Money Laundering Report	Blockchain analytics company CipherTrace includes IDAX in their Q4 2019 Money Laundering Report. TBD more details.
May 11th, 2020 5:43:44 AM MDT	Website Goes Offline	The last time that the website was captured by the Internet Archive. The title still translates to "TOP10 Digital Asset Blockchain Exchange".

Technical Details

This section includes specific detailed technical analysis of any security breaches which happened. What specific software vulnerabilities contributed to the problem and how were they exploited?

Total Amount Lost

The total amount lost is unknown.

How much was lost and how was it calculated? If there are conflicting reports, which are accurate and where does the discrepancy lie?

Immediate Reactions

“Cryptocurrency exchange IDAX Global has announced its CEO has gone missing.” The official announcement states, “IDAX Global CEO have gone missing with unknown cause and IDAX Global staffs were out of touch with IDAX Global CEO. For this reason, access to Cold wallet which is stored almost all cryptocurrency balances on IDAX has been restricted so in effect, deposit/withdrawal service cannot be provided.”

“The IDAX staffers claim they have been unable to reach [Lei] Guorong and do not know his whereabouts at the moment.” The announcement came four days after the company said it would no longer provide services for users in China due to an official policy that makes exchanges illegal in the country. IDAX has since recommended that all users “refrain from using our all [sic] platform services.”

“The shock announcement follows last week’s upheavals when the exchange revealed demand for IDAX withdrawals rose dramatically after it was pulled from the Chinese market.” “Presently, the staff of the exchange and the executive can neither claim to have access to the funds nor they can decipher the location where it is being held. So, due to these unfortunate circumstances; withdrawals and future deposits have been halted.”

IDAX Announcement On Website

IDAX Global posted on their website on November 28th:

Dear user,

Following the official announcement "Announcement of IDAX withdrawal channel congestion" on November 24, We announce Urgent notice about current situation of IDAX Global.

Since we have announced the announcement on November 24, IDAX Global CEO have gone missing with unknown cause and IDAX Global staffs were out of touch with IDAX Global CEO.

For this reason, access to Cold wallet which is stored almost all cryptocurrency balances on IDAX has been restricted so in effect, deposit/withdrawal service cannot be provided.

IDAX Global is doing its best to try to grasp variety of news and current situation exactly including rumor on internet community.

IDAX Global is drawing up an emergency plan about platform services including deposit/withdrawal service so it is recommended that you refrain from using our all platform services.

We are really sorry for this situation and for all damaged users who love IDAX.

Ultimate Outcome

What was the end result? Was any investigation done? Were any individuals prosecuted? Was there a lawsuit? Was any tracing done?

The IDAX website is presently offline.

Total Amount Recovered

There do not appear to have been any funds recovered in this case.

What funds were recovered? What funds were reimbursed for those affected users?

Ongoing Developments

What parts of this case are still remaining to be concluded?

General Prevention Policies

All the funds appear to be held in a wallet under the control of a single individual Lei Guorong. It does not matter the size or international scope or reputation of the organization. If funds are held by one individual - they can disappear with them. The limited transparency and no legal backing presently available on exchanges make these types of situations highly possible. The situation would have been impossible with a proper multi-signature wallet held by multiple known individuals.

Individual Prevention Policies

No specific policies for individual prevention have yet been identified in this case.

For the full list of how to protect your funds as an individual, check our Prevention Policies for Individuals guide.

Platform Prevention Policies

Policies for platforms to take to prevent this situation have not yet been selected in this case.

For the full list of how to protect your funds as a financial service, check our Prevention Policies for Platforms guide.

Regulatory Prevention Policies

No specific regulatory policies have yet been identified in this case.

For the full list of regulatory policies that can prevent loss, check our Prevention Policies for Regulators guide.