Another day, another scam. IDAX today confirmed that their CEO has gone AWOL with the company's cold wallet. I've heard this since Sunday and we added the warning on CoinGecko earlier this week.
Not your keys, not your coins. Amount lost still unknown.
Man, it’s weird how often crypto currency exchange CEOs go missing. If only there was some way to ensure that the cold wallets would be available to individual customers to buy and sell while the CEO is missing.
The opposite of a Dead Man’s Switch. There’s no good reason why the CEO of an exchange dying or going missing should cause the entire business to collapse in and of itself. If the CEO of Bank of America died today I would still be able to check my online banking balance, use my debit card, use an ATM, etc.
The back end functioning of an exchange, by contrast, resembles a [Load Bearing Boss in a video game](https://tvtropes.org/pmwiki/pmwiki.php/Main/LoadBearingBoss) — when the boss dies, the whole thing automatically collapses. That’s dumb as hell and crypto people shouldn’t tolerate that.
>**The opposite of a Dead Man’s Switch.**
A Dead Man's Switch is a train driving term, basically if the driver doesn't press a button every 60 seconds (or whatever) the train fail safe kicks in and the train coasts to a stop to protect the train and the passengers.
In a business, a Dead Man’s Switch protects the business and allows the business to go on functioning if key people die or go missing. Example: if a CEO or whatever doesn't click a button every day or week or whatever, then the fail safe kicks in, and the passwords, etc would be sent / made available to nominated people.
The Dead Man's Switch - and not the "opposite of a Dead Man's Switch" - is exactly what would allow a business to keep operating after the CEO goes missing while setitng up an orphanage in India.
Maybe you're right. I think of a dead man's switch as something that stops a machine from functioning (when allowing it to keep going would be dangerous, such as in your train example). It's something that kicks in when there's an emergency.
I still consider it conceptually strange that the CEO has to "click a button every day" in order to keep the system running. These functions, passwords, permissions, etc. shouldn't be solely in the hands of the CEO to begin with; they should *already* be released to key executives on a routine basis even if nothing has happened to the CEO.
These critical functions (approving individual customer deposits and withdrawals) shouldn't require the personal involvement of the CEO. To me, what that says is that the business is poorly organized, and that the CEO either doesn't have anyone reporting to him or doesn't trust any of the people around him to do even routine tasks without his personal supervision. That's a pretty shitty way to run any large business.
There's two types of dead man's switch, fail safe and fail dangerous.
Fail safe switches are used for everyday operations, where you want the operator's death to not kill everyone or ruin everything, like the train example.
Fail dangerous switches are designed to, well, do the opposite.
Think an automatic nuclear response or suicide vest.
You want it to explode when nobody can press the button.
Given how important butters think their keys and storages are, what one would they settle on?
Two weeks ago, a 15 day estimated time for tracking misplaced funds.
[14 Nov] IDAX takes a lot of manpower and time to deal with the problem of the wrong currency address because of the safety requirements of the hot wallet, the processing cycle is expected to be more than 15 working days, please wait patiently;
One week ago, warning that withdrawals were not being processed.
[24 Nov] Recently, 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.
And the same day, ditching one of the largest Crypto markets in the world, without any explanation other than "policy changes", and no information about how those locked-out users can extract their funds.
[24 Nov] IDAX official website and APP will no longer serve users in China due to policy reasons. But other countries users can use IDAX exchange. We apologize for any inconvenience caused to you.
Then yesterday, the coop de Gracie.
[29 Nov] IDAX Global CEO have gone missing with unknown cause ... deposit/withdrawal service cannot be provided ... recommended that you refrain from using our all platform services.
Those are hardly "Warning signs". For them to be a warning, they would have to happen prior to going scam. Those "warnings" right there aren't warning of anything considering they occurred after withdrawals were shut down.
"The channel that causes the withdrawal of the mainstream currency is in a congested state."
That is fucking classic. I am quite drunk right now but even in this state, Jesus, that's such a scammy, weaselly, wonderfully-crypto phrase!
So sorry, money is borked right now, too many of you want it. Oops, bye!
People are just looking for the most suited platforms for them, they are oftenly encouraged by other people, by some giveaways, promotions, lower fees etc. It's not that the biggest exchanges are the best ones, crypto has proven many times that even the colossus can fall instantly. IDAX has it's own renown, build up on years of experience, it's wasn't a "shady exchange" until today i think.
Those huge exchanges charge absurd listing fees for the coins, which means most coins don't trade on them. If you want to buy one of those coins, then you have to trade on one of those "shady exchanges".
Besides, the only real difference between a reputable and time-proven exchange and a shady exchange, is the shady one happened to go scam. Up until that point Idax was a reputable and time-proven exchange. They were running for several years and successfully traded billions of dollars worth of crypto.
IDAX Staff Member: "Hey Lei Guorong, where u goin?"
Lei: "Staff room's outta milk, just goin to the shop"
IDAX Staff Member to another: "Is it me or did it look like he had a bunch a Trezors in his trouser pocket..?"