The Hong Kong-based cryptocurrency exchange BitForex has raised concerns among users after its website and trading application were suspended on February 23. This suspension has left users unable to withdraw their funds or access the exchange for several days. BitForex, which boasted a trading volume of over $2 billion as recently as February 24, has now gone dark, with trading activity coming to a standstill.
Data from CoinGecko reveals a significant drop in trading volume from $2.5 billion to $1 billion between February 22 and February 24 before completely flatlining. The normalized data implies that BitForex may have inflated its trading volumes by up to 100 times. This normalized data takes into account web traffic statistics, indicating that the actual trading volume for February 22 was only $25 million. Furthermore, on February 23, crypto investigator ZachXBT reported significant outflows of approximately $56.5 million from BitForex’s hot wallets, after which withdrawals were abruptly halted without any official communication from the exchange.
Further scrutiny of BitForex’s holdings has raised red flags, as the exchange holds a substantial portion of TRB and OMI token supplies, with 18% of TRB and 7% of OMI in its possession. Users seeking clarification through platforms like Telegram have been met with silence, as the company’s CEO, Jason Luo, stepped down a month ago. This sudden leadership change, combined with the recent events, has fueled doubts about BitForex’s stability.
On-chain activity for BitForex’s native BF token has been minimal, with only $2,000 worth of movements in the past 11 days. Updates on CoinmarketCap also paint a grim picture, with no new data available for over 65 hours, showing dwindling trading volumes in Ethereum and Bitcoin. The exchange’s official Telegram channel remains dormant, with one admin, Hazel_BitForex, even deleting their account. Other admins have not responded to any messages since February 21, leaving over 1,000 users online waiting for answers.
Despite having a security rating from Certified, indicating an insurance policy, specific details are scarce. The lack of communication on various platforms, including the website, X account, and Telegram, has left users with funds trapped on the exchange in a state of uncertainty and concern. The current situation suggests a dark reality for BitForex users, with no clear indication of when or if normal operations will resume.
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