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BitForex Halts Withdrawals

BitForex Halts Withdrawals


Good day everyone,

I hope you are all well and having excellent day, welcome to CryptoGod-1’s blog on all things crypto. In this post I will be looking at the recent blackout from the Hong Kong exchange BitForex.

 

 

BitForex

The Hong Kong-based cryptocurrency exchange BitForex has suddenly halted withdrawals and suspended its website on the 23rd of February 2024. There has been a blackout from the exchange and users have been unable to initiate withdrawals or access the exchange. As recently as the 24th of February 2024 there was over $2 billion in trading volume on the exchange. with approximately $56 million in cryptocurrencies withdrawn before the halt. Crypto investigator ZachXBT noted on 'X' that  approximately $56.5 million in outflows from three of BitForex’s hot wallets on the 23rd of February.

 

Following on from that withdrawals were halted without official communication from the exchange. With no communication it is unknown whether the withdrawal of funds from BitForex’s hot wallets resulted from a hacker attack, or if the exchange voluntarily halted withdrawals. With no official statement from BitForex as of yet, concerns have been raised regarding the users left in the dark.

There have been concerning details raised regarding BitForex’s holdings  as the exchange holds a significant portion of TRB and OMI token supplies, precisely 18% of TRB and 7% of OMI. Not since May 2023 has BitForex’s X account been active while their official Telegram channel remains inactive. One admin deleted their account and others have failed to respond to any posts since the 21st of February 2024.

Some users of Telegram have noted the exchange’s official Telegram channel has seen multiple issues, including difficulties logging in and encountering empty dashboards. Users even shared screenshots indicating they have been blocked from accessing the company’s website. BitForex remains silent and has offered no advice or information on the issues, with users growing in uncertainty regarding the safety of user funds.

The CEO of BitForex announced his departure in January 2024 when Jason Luo decided he was done in his role. At the time it raised eyebrows and given the the lack of response from the exchange regarding recent issues it makes things even more suspicious. Trading volume on the exchange has dropped from $2.5 billion to $1 billion between February 22nd and February 24th before fianlly levelling off.

There are worries that the exchange may have inflated its volumes by up to 100 times, with normalized data showing more accurate volume of $25 million on February 22nd when taking into account web traffic statistics. The exchanges BF token has been limited and shown little movement in the past 11 days. The latest update shows approximately $280 million in Ethereum trading volume, and about $175 million in Bitcoin trading volume.

With an abrupt leadership changes, decreasing trading volumes, and limited transparency from BitForex, users are in a panic regarding the company’s stability and reliability. Users and observers are increasingly concerned about the safety of their funds and the future of the exchange amidst these uncertainties.

The Securities and Futures Commission (SFC) of Hong Kong had issued a warning to crypto investors recently and requested them to only make use of licensed trading platforms. There is also a looming deadline for virtual asset trading platforms based in Hong Kong to submit their license applications before the 29th of February 2024. At the time of writing only OSL Digital Securities and Hash Blockchain are licensed virtual asset trading platforms in Hong Kong, with 14 more entities on the list of applicants, including well-known names like OKX, HKVAX, Bybit, and DFX Labs.

 

 

 

Have a great day.

Peace. CryptoGod-1.

 

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cryptogod-1
cryptogod-1

Writer, designer, creator, and life enthusiast. I love to read and write and enjoy sharing my passion for crypto, sports, literature and everything and anything I can enjoy in life.


CryptoGod-1 : Crypto & Blockchain
CryptoGod-1 : Crypto & Blockchain

Enthusiast here looking to share my ideas, thoughts, analysis, and experience when it comes to all things crypto

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