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Crypto Withdrawals Frozen at BitForex Without Explanation After $56M Outflow

Crypto Withdrawals Frozen at BitForex Without Explanation After $56M Outflow

Key Takeaways

  • BitForex has halted withdrawal services without providing an official explanation to its users.
  • Before the suspension, BitForex experienced a withdrawal event with approximately $56 million in crypto being moved from the exchange's wallets.
  • BitForex's lack of communication has led to increasing worry among its user base, with some speculating about the possibility of an exit scam.

BitForex, a cryptocurrency exchange based in Hong Kong, has recently suspended withdrawal services without any official explanation, leaving users in the dark.

This happened after it was reported that millions worth of cryptocurrencies were transferred from the crypto exchange's wallets just a day before the freeze.

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The unexpected halt was first brought to light by blockchain investigator ZachXBT, who noted that approximately $56.5 million of digital assets flowed out of three BitForex hot wallets.

Since the freeze, users went to BitForex's official Telegram to report problems, ranging from being unable to log into their accounts to missing assets on their dashboards. The website is inaccessible at the time of writing.

Amidst growing concerns, BitForex's communication channels have gone silent, with no updates on their X account since February 21.

Some crypto community members are speculating whether it is an exit scam; however, there are not enough details to make such a statement.

BitForex also encountered challenges in April 2023, when it came under scrutiny by Japan's Financial Services Agency (FSA) for allegedly violating the nation's fund settlement laws by operating without the necessary registration. Since this incident, BitForex has stayed off the regulatory radar.

This incident adds to the growing list of concerns among cryptocurrency exchange users, highlighting the importance of transparency and regulatory compliance in the sector.

In other news, related to crypto exchanges, the bankrupt FTX has received court approval to sell its Anthropic shares, potentially adding over $1 billion to its cash reserves, which would be used for customer repayments. 

Aaron S., Editor-In-Chief
Having completed a Master’s degree in Economics, Politics, and Cultures of the East Asia region, Aaron has written scientific papers analyzing the differences between Western and Collective forms of capitalism in the post-World War II era.
With close to a decade of experience in the FinTech industry, Aaron understands all of the biggest issues and struggles that crypto enthusiasts face. He’s a passionate analyst who is concerned with data-driven and fact-based content, as well as that which speaks to both Web3 natives and industry newcomers.
Aaron is the go-to person for everything and anything related to digital currencies. With a huge passion for blockchain & Web3 education, Aaron strives to transform the space as we know it, and make it more approachable to complete beginners.
Aaron has been quoted by multiple established outlets, and is a published author himself. Even during his free time, he enjoys researching the market trends, and looking for the next supernova.

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