IDAX Crypto Exchange Review: What Happened and Why You Should Avoid It
Back in 2018, IDAX looked like a promising crypto exchange. It offered over 300 trading pairs, low fees as low as 0.1%, and a mobile app that promised up to 8% APY on your holdings. For users tired of limited altcoin choices on bigger platforms, IDAX seemed like a hidden gem. But by late 2019, everything collapsed - and not quietly. The exchange froze withdrawals, the CEO vanished, and thousands of users lost access to their funds forever. This isn’t a story about a technical glitch. It’s a case study in how not to run a crypto exchange.
How IDAX Sold Itself - And What It Really Was
IDAX claimed to be a global platform backed by security firms like Slowmist and Beosin. Its website and Google Play listing promised fast deposits, secure cold storage, and a professional team. The exchange was registered in Mongolia, which gave it just enough legal distance from stricter regulators in the U.S., Europe, and Asia. It didn’t need to prove it held user funds. It didn’t need to show proof of reserves. And it didn’t need to be licensed.
That’s the first red flag. Legitimate exchanges like Binance or Coinbase don’t hide behind offshore registrations. They publish regular audits, use multi-sig wallets, and have clear compliance teams. IDAX had none of that. Its entire model relied on trust - and trust is the one thing you should never give a crypto exchange without proof.
The Trading Experience: Fast, But Risky
For traders, IDAX worked. The interface was clean. You could place limit orders, check real-time charts, and trade obscure tokens like ARDX and MONT that weren’t listed anywhere else. The maker-taker fee structure was competitive: 0.10-0.15% for makers, 0.15% for takers. Withdrawal fees were low too - just 0.0005 BTC per transaction.
But here’s the catch: every feature was designed to lure you in - not protect you. The mobile app pushed staking rewards like they were guaranteed. It offered loans against your crypto, promising instant cash. It even claimed you could deposit and withdraw directly to your bank account. All of this sounded great - until you realized there was no safety net.
Unlike NDAX or Kraken, IDAX didn’t have custody insurance. No segregated accounts. No third-party verification of holdings. Your funds were stored in wallets controlled by one person: the CEO, Lei Guorong. That’s not just risky - it’s a disaster waiting to happen.
The Collapse: No Warning, No Recovery
In November 2019, users woke up to find they couldn’t withdraw. Deposits were frozen. The website went silent. Then came the official statement: the CEO had gone missing. The cold wallets? Locked. Access? Gone.
There was no emergency meeting. No timeline. No customer support. The exchange simply stopped working. By March 2020, Cryptowisser confirmed the site was offline and issued a blunt warning: "Be very careful until further notice."
This wasn’t a hack. This wasn’t a liquidity crunch. This was exit fraud - the same thing that happened with QuadrigaCX, where the founder died and took the private keys with him. In IDAX’s case, there’s strong evidence Lei Guorong took the keys and disappeared with the funds. Blockchain analysts confirmed: user assets were irretrievable because only one person held the master access.
Why IDAX Failed When Others Survived
Between 2017 and 2020, hundreds of crypto exchanges popped up. Most failed. But the ones that survived - Binance, Kraken, Bitstamp - did so because they built trust through transparency. They published proof of reserves. They partnered with auditors. They followed KYC and AML rules.
IDAX did none of that. It operated in the gray zone: low fees, high altcoin selection, no regulation. That’s a recipe for short-term growth - and long-term disaster. When regulators cracked down on unlicensed platforms, IDAX had no defense. When users panicked and tried to withdraw, it had no liquidity buffer. When the CEO vanished, there was no backup plan - because there was never supposed to be one.
Compare IDAX to NDAX, which was registered with FINTRAC in Canada. Even during market crashes, NDAX kept operating. It had legal recourse, insurance, and clear governance. IDAX had none of that. It was a shell.
What Happened to User Funds?
No one knows for sure. Some users reported losing everything - hundreds of thousands of dollars in BTC, ETH, and altcoins. Reddit threads from 2019-2020 are full of desperate posts: "My entire portfolio is gone," "I can’t reach anyone," "Is there any way to get my money back?"
There wasn’t. No recovery fund. No insurance payout. No legal action that returned a single coin. OpenPR’s report suggested users might be able to trace their funds - but didn’t explain how. No court case ever resulted in restitution. The Mongolian authorities never intervened. The Chinese government, where IDAX’s parent company Nianxiang Group was allegedly based, denied involvement.
Today, IDAX’s website is a dead link. Its social media accounts are inactive. Its mobile app has been removed from the Google Play Store. CoinGecko still lists it - but only as a historical artifact with zero trading volume.
Lessons Learned: How to Avoid Another IDAX
If you’re considering any crypto exchange today, ask yourself these five questions:
- Is it regulated? Look for licenses from FINTRAC, FCA, or other major authorities. If it’s registered in the Caymans or Mongolia without clear oversight, walk away.
- Does it publish proof of reserves? Reputable exchanges use third-party audits to prove they hold your coins. IDAX never did.
- Are private keys controlled by one person? If the answer is yes, that’s a single point of failure. Look for multi-sig or institutional custody solutions.
- Is there customer support? Test it before depositing. Can you get a response in 24 hours? If not, you’re on your own when things go wrong.
- Do they offer staking or loans with unrealistic returns? 8% APY sounds great - until you realize the platform can’t back it up. High yields on unregulated exchanges are almost always a trap.
There’s no shame in using a smaller exchange - but there’s huge risk in using one without transparency. IDAX didn’t fail because of bad tech. It failed because it was built on lies.
Is IDAX Still Operating?
No. As of 2025, IDAX is completely defunct. No trading. No support. No recovery. It exists only as a warning. If you see any site claiming to be "IDAX 2.0" or "New IDAX Exchange," it’s a scam. The original entity dissolved in 2020, and all associated domains and apps have been taken down.
Don’t fall for revival claims. Don’t trust anonymous teams. Don’t assume "it’s different this time." The same mistakes are being made today on new platforms promising high yields and low fees. Learn from IDAX. Protect your assets.
Is IDAX crypto exchange still active?
No, IDAX ceased operations in late 2019. All deposits and withdrawals were frozen, the CEO disappeared, and the platform went offline. As of 2025, it is completely defunct with no recovery efforts or operational revival.
Did anyone get their money back from IDAX?
No, there is no evidence that any user recovered their funds. The exchange’s CEO held sole access to the cold wallets, and when he vanished, the assets became irretrievable. No audits, insurance, or legal actions resulted in compensation for users.
Was IDAX regulated?
No, IDAX operated without any regulatory oversight from major financial authorities. It was registered in Mongolia, a jurisdiction with minimal crypto regulations at the time, and did not comply with KYC, AML, or proof-of-reserves standards required by reputable exchanges.
Why did IDAX collapse?
IDAX collapsed due to exit fraud. Its CEO, Lei Guorong, allegedly took control of the private keys to the cold wallets and disappeared with user funds. The exchange had no custody insurance, no multi-sig security, and no transparency - making it vulnerable to internal theft.
Can I still use the IDAX app?
No, the IDAX mobile app has been removed from the Google Play Store and is no longer functional. Any app claiming to be IDAX today is a phishing scam designed to steal your login details or private keys.
How does IDAX compare to Binance or Coinbase?
IDAX was nothing like Binance or Coinbase. Those platforms are regulated, publish regular audits, use institutional custody, and offer user protection. IDAX had none of these safeguards. It traded on low fees and high altcoin selection to attract users - but offered zero security or accountability.
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