- Bitforex has re-opened following a police investigation into the unexplained loss of $56.5 million in cryptocurrencies
- The exchange has been offline since February due to a police investigation
- Users have regained access to the platform and are able to withdraw their funds
Hong Kong exchange Bitforex has re-opened following a police investigation. The exchange was temporarily shuttered in February after approximately $56.5 million in cryptocurrencies left the exchange without notice or reason, an event which precipitated an investigation by the Chinese police. This led to the platform being taken offline and an investigation by the Hong Kong regulator, but users are once again able to use the platform and withdraw their funds. The Bitforex team said the platform went offline after the team was “detained” as part of the police investigation.
Bitforex Halted All Services
Bitforex ceased withdrawals without warning on February 26, three days after the mass withdrawals, which resulted in the exchange being taken offline. In response to the growing alarm, the Hong Kong Securities and Futures Commission (SFC) issued a warning regarding Bitforex, expressing serious concerns about the exchange’s operations and the potential risks it posed to investors.
As the situation escalated, the Commercial Crime Bureau (CCB) launched an investigation into the shut down of Bitforex and the lost funds, with the spotlight turning on Attention has also turned to Jason Luo, who had stepped down as CEO on January 31. Luo, however, has never been charged in connection to the episode.
Bitforex Team Was “Detained”
Bitforex revealed on X that it is back online, explaining what happened:
We sincerely apologize for the inconvenience and concerns you have experienced during this period. On February 23, 2024, the Bitforex team was detained and investigated by the Jiangsu Province police in China. This unexpected event caused the platform to become inaccessible, and users were unable to withdraw asset[s] on that day. Due to the sensitive nature of the situation, we were unable to provide timely notifications to our users.
The company said that all operations are now up and running, although users will no doubt seek answers over the missing funds amid fears that there could be a repeat.
