The CEO, Vlad Nistor, of Romanian cryptocurrency exchange CoinFlux was recently arrested according to local Romanian news outlets several days ago. Specifically, Nistor was detained in the city of Cluj-Napoca on Tuesday. The outlets also report that he is awaiting extradition to the United States.

Vistor will reportedly be charged with fraud, computer fraud, money laundering, and possibly additional charges. It should be noted that Coinflux is not, by any means, a major cryptocurrency exchange that is known globally. In fact, the volume associated with the exchange is so small that it doesn’t even register on Coinmarketcap. However, the arrest of any CEO of a cryptocurrency exchange could be damaging to the reputation of the cryptocurrency markets as a whole.

Nature of Arrest

An editorial for a local Romanian newspaper seemed to take issue with the way that the arrest was handled, suggesting that the arrest and extradition might be “unfair”. Specifically, the rough translation was as follows:

“Either Romanian Vlad Nistor rushed USSS guest starters yesterday morning, packed him tonight, and today he wants to pack him in the United States. Nobody opposes extradition from the Romanian authorities, even though the Romanian citizen is only in a criminal investigation stage – no one knows why he is accused (yesterday even the defenders hadt no idea what to build their minimal defense). Well, how about human rights, the right to an equitable judge, the equality of arms, and so on?”

CoinFlux Consequences

The bank accounts of Coinflux have now been officially frozen. The exchange did not seem to acknowledge the CEO arrest on social media previously, but now has recognized that there is an investigation. Specifically, the Coinflux team stated that they are in the “unpleasant situation of temporarily stopping any digital currency exchanges.”

The cryptocurrency exchange marketed itself as a platform to buy, sell and trade well-known cryptocurrencies such as Bitcoin (BTC), Ethereum (ETH), Ripple (XRP), and Litecoin (LTC). The website states now that “buying and selling has been temporarily disabled” on the main page of its website.

Alexandru Coman of Coinflux offered this statement, that seemed to understand the gravity of the situation: “We are aware that this is a worrisome situation for the people who placed their trust in our service, and we assure each and every one of them that we will do everything that’s up to us to fix this unfair situation.”