Cryptocurrency exchange BitForex has gone offline after $57 million was reportedly withdrawn from the exchange’s hot wallets on Feb. 23.
According to ZachXBT, a prominent blockchain sleuth, the withdrawals have stopped processing and the BitForex team is unresponsive to user requests.
When users try to access the BitForex website, they are met with a page that says: “Sorry, you have been blocked.”
BitForex owns 18% of the total supply of tellor {{TRB}}, worth $54 million. It remains unclear whether a hacker has infiltrated BitForex’s hot wallets or whether the team has voluntarily halted withdrawals.
However, BitForex’s team has remained notably silent, failing to address the mounting questions and concerns of its user base.
Past Controversies Facing BitForex
Adding to the unease is the recent departure of BitForex’s CEO, Jason Luo, from his role on Jan. 31, leaving stakeholders uncertain about the platform’s leadership and direction.
BitForex has a history of regulatory scrutiny and allegations of impropriety. The exchange has faced accusations of faking trading volume, as highlighted in a 2019 Chainalysis report.
Moreover, Japanese regulators have flagged BitForex for operating without a license, culminating in accusations of violating the country’s fund settlement laws in April 2023. As of September 2023, BitForex was ranked among the top crypto exchanges by capitalization with daily trading volume standing at about $2.6 billion in crypto.
Due to the lack of an active website, X platform, and suspension of withdrawals, BitForex appears to be heading for a similar collapse as FTX.
However, we can only confirm once we have more information.
