Early this year, following the freezing of their bank accounts, a Romania-based cryptocurrency exchange called BTCxChange, shut down operations. The exchange instructed its customers to withdraw their funds on the exchange before the 1st of May 2018. Recently another Romania-based crypto exchange CoinFlux, has paused operations as a result of its banks account getting frozen.
CEO of CoinFlux Arrested
Based on a recent report, the CEO of CoinFlux, Vlad Nistor is currently under investigation and he has been arrested and detained. The report further made it known that the arrest of Nistor was orchestrated by the US government. As a result of this, he would be extradition to the U.S to face charges levelled against him. Nistor who was arrested in Cluj-Napoca earlier this week is reportedly charged “with fraud, computer fraud, money laundering, and what amounts to racketeering”.
CoinFlux which was founded in 2015 processed over 201 million EUR exchanged in 203,120 transactions, has also alerted its users of the freezing of its account through a blog post. The blog post also made it known that the team has lost access to some part of its system. As a result of this restriction, the team could not update its users via email or the official website.
Excerpt from the blog post detailing the current situation reads:
Due to a recently started, unexpected investigation, we are in the unpleasant situation of temporarily stopping any digital currency exchanges.
Unfortunately, our company’s bank accounts have been frozen, a situation which affects the CoinFlux wallets as well. We are doing all possible efforts, along with our legal advisers, to make sure everyone who had money deposited in CoinFlux wallets gets it back.”
The State of Limbo
Currently, all activities on the platform have been halted. However, the CoinFlux team has made it known that it is taking all necessary steps towards salvaging the situation and hopefully everything will be back on track in a few days.