The CEO of the CoinFlux crypto exchange in Romania, Vlad Nistor, has been arrested at the behest of the U.S. on charges of fraud and money laundering.
A person places a great deal of trust when deciding to use a cryptocurrency exchange. For starters, they expect that their funds will be kept safe from hackers. (An occurrence that is too often not the case.) Then there’s the faith that the managers of the exchange will follow the law and not do things like embezzling funds and skipping town. It appears that the CEO of one particular exchange may have failed the trust given to him by his customers.
CoinFlux CEO Faces Charges
Vlad Nistor is the CEO of CoinFlux, the largest cryptocurrency exchange in Romania. The exchange was founded back in 2015 and has since processed more than 200 million euros. In 2017 alone, the exchange handled over 30,000 transactions.
As such, the exchange is an important part of the cryptocurrency fabric in Romania. Now that fabric has been torn asunder.
Due to a warrant issued by the United States, law enforcement in Romania arrested Nistor. He faces a litany of charges, such as fraud, money laundering, and ties to organized crime. The next step in the process is that he will go before the Appeals Court of Bucharest as they will decide on extradition.
Exchange Shuts Down
While the CEO faces an array of criminal charges, the exchange has been forced to shut down. A message from CoinFlux states:
Unfortunately, our company’s bank accounts have been frozen, 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 exchange added:
Another unpleasant consequence of the investigation is the fact that our access to some parts of our platform has been restricted, thus we are unable to send this announcement through the usual communication channels: e-mail and website. Our expectation is that we will gain control back, within the next days.
The team at CoinFlux has promised to keep their clients informed of any updates and that they will do everything possible to fix the situation. This is a blow to crypto enthusiasts in Romania, but hopefully, the matter will resolve itself soon.
Have you ever had your crypto frozen on an exchange? Let us know in the comments below.
Images courtesy of Pxhere and Pixabay.