BitForex Vanishes Amid Scandal in Hong Kong
Hong Kong’s crypto landscape has been shaken by the sudden disappearance of BitForex, an exchange that reportedly absconded with $57 million in client deposits last month. According to police officials, the city’s Commercial Crime Bureau is currently investigating the exchange, which went silent in February. Investors have expressed their concerns, suspecting that the exchange may have made off with their funds.
CEO Remains Silent
BitForex, although registered in Hong Kong, has raised suspicions as its listed addresses appear to be virtual services, and there is no evidence that it operated from these locations. A spokesperson for the police opted not to share specific details about the ongoing investigation, citing a policy against commenting on active cases.
Investors Face Heavy Losses
Amid growing anxiety, investors are grappling with significant financial losses and limited prospects for recovery. One affected investor, Carl, a research analyst from Australia, recounted the distressing experience of witnessing the theft of his funds in real time. He recalled the team’s assurances that the exchange was merely undergoing maintenance, only to find that it had locked its doors and vanished within hours.
Searching for the CEO
The hunt for BitForex’s CEO, Jason Luo, is underway. Despite the exchange’s claims of operating from Hong Kong, registration documents indicate that Luo’s address is in Shenzhen, where trading virtual assets is prohibited. BitForex has been unreachable since it became inaccessible on February 23. Shortly after, the Hong Kong Securities and Futures Commission (SFC) issued a warning to investors about the platform, noting that it had neither obtained a license to operate nor applied for one.
Desperation for Answers
Carl shared his frustration over the situation, explaining that he chose BitForex last October due to its availability of OMI, an altcoin he wanted to purchase. Typically, he trades on Binance, but he had about 10 million OMI tokens on BitForex, valued at approximately $20,000. He reported that another individual he spoke to lost around $185,000 in Solana. Initially, Carl suspected a technical glitch and attempted to reinstall the app, but upon trying to log in, he found it inaccessible. The support team cited “unscheduled maintenance,” and other users reported issues with the staking program.
Community and Concerns
It remains unclear how many users have been impacted by the sudden disappearance of the exchange. BitForex had claimed to serve over six million users. Carl is part of a Telegram group consisting of nearly 800 members, all of whom are in similar predicaments, seeking clarity and reaching out to law enforcement globally.
Whereabouts of Jason Luo?
Investors are increasingly questioning the whereabouts of Jason Luo, who co-founded BitForex in 2017 but stepped down just weeks before the exchange’s disappearance, as noted on his LinkedIn profile. He did not provide any details regarding his successor. Many find it hard to believe that this timing is merely coincidental. While Luo’s Telegram indicates he was recently active, messages sent by DL News remain unread, leaving investors in the dark about his location and intentions.
