Suspicious Activity at BitForex Crypto Exchange
Concerns are mounting over the Hong Kong-based crypto exchange BitForex, as its website has become inaccessible following a substantial withdrawal of approximately $57 million from its hot wallets on February 23. Blockchain investigator ZachXBT has reported that the platform has halted all withdrawal processing, and users are expressing frustration over a lack of communication from BitForex’s support team regarding their issues.
Website and Communication Issues
Users attempting to access the BitForex website are met with a message stating, “Sorry, you have been blocked.” Furthermore, the exchange’s X account has not posted any updates since May 2023. This lack of communication has left many users in the official BitForex Telegram channel worried about various account-related problems, including difficulties in logging in and a lack of visible assets on their dashboards. Some have even reported receiving notifications indicating they are blocked from accessing the site altogether.
Leadership Changes Raise Concerns
BitForex has faced internal turmoil recently, with CEO Jason Luo stepping down last month. Despite his departure, Luo expressed confidence in the new leadership team, stating they would usher in a new era for the exchange. However, this abrupt change in management, combined with the recent troubling events, has led to increased worry regarding the stability of BitForex.
Significant Decline in Trading Volume
Data from CoinGecko reveals a sharp decline in trading volume on BitForex, which plummeted from $2.5 billion to $1 billion between February 22 and February 24 before showing signs of stabilization. A deeper analysis suggests that the exchange may have inflated its reported trading volumes by up to 100 times. Normalized data, which includes web traffic metrics, indicated that actual trading volume was only about $25 million on February 22. ZachXBT has also highlighted that BitForex possesses significant holdings of TRB and OMI tokens, adding to the urgency of the situation. He has identified specific wallets linked to these activities, underscoring the need for vigilant monitoring as events unfold.
Minimal On-Chain Activity Observed
Recent observations show that there has been a lack of on-chain activity for BitForex’s native BF token, with transactions amounting to merely $2,000 over the past 11 days. This stagnation raises further questions about the exchange’s operational health and the overall confidence of its user base.
Disclaimer
Coinspeaker remains dedicated to providing impartial and transparent news. This article is intended to offer accurate and timely information and should not be construed as financial or investment advice. Given the rapidly changing market conditions, we recommend verifying information independently and consulting with a financial professional before making any investment decisions based on this article.
