- Bitforex, a Hong Kong-based cryptocurrency exchange, has ceased operations, raising exit scam fears among users
- On February 23, significant outflows from Bitforex’s hot wallets amounted to about $56.5 million
- With zero trading volume on CoinMarketCap and CoinGecko, users are anxiously seeking reassurance about the safety of their funds.
Hong Kong-based cryptocurrency exchange Bitforex has halted all operations, sparking concerns among users who fear they may have fallen victim to an exit scam. The exchange’s hot wallets recorded significant outflows totaling approximately $56.5 million on February 23, according to findings by pseudonymous on-chain investigator ZachXBT. Bitforex currently shows zero trading volume on both CoinMarketCap and CoinGecko, leading to users desperately searching for reassurance that their funds have not disappeared.
Withdrawals Suspended as $56.5 Million Leaves Wallets
Concerns over the fate of Bitforex surfaced yesterday when withdrawals were been suspended without warning, leading to a wave of complaints on the exchange’s official Telegram channel. Users reported inaccessible accounts and depleted balances, with claims that the exchange has selectively deleted messages addressing these issues. Users reported that the Community Manager has also gone silent and changed her profile picture following the incident.
Bitforex attributed the shutdown to “unscheduled maintenance,” a statement that has failed to quell unrest among users. While the exchange has posted nothing on its own X account, it communicated the situation to the OMI ecosystem’s official account, stating that the exchange is “currently undergoing unscheduled maintenance.”
We have been made aware of reports from users that they are unable to access the @Bitforexcom exchange.
According to the exchange, they are currently undergoing unscheduled maintenance.
We have reached out to the exchange directly and will update the community when further…
— ECOMI | $OMI ⭕️ (@ecomi_) February 23, 2024
Access to the exchange is largely restricted, with only a few support pages accessible. Crypto sleuth ZachXBT also discovered that almost $57 million worth of tokens was withdrawn from the exchange’s hot wallets last week, raising the prospect of a hack or an inside job:
Seeing some suspicious activity with the crypto exchange @Bitforexcom.
On Feb 23 their hot wallets saw outflows of ~$56.5M. Shortly after this time withdrawals stopped processing with no official announcements having been made since.
Currently users are asking questions on… pic.twitter.com/gFEcwExHKh
— ZachXBT (@zachxbt) February 26, 2024
Bitforex has a troubled history which includes past accusations of faking trading volume and operating without proper registration, which was flagged by Japan’s Financial Services Agency last year.
