Hong Kong-based BTC and altcoin exchange Bitforex has recently created panic among investors due to suspicious outflows of money from its hot wallets and lack of communication. On February 23, it was observed that approximately $56.5 million worth of crypto money was withdrawn from the exchange’s hot wallets. Following this development, Bitforex stopped withdrawals and has not made an official statement since then. Here are the details…
Transactions stopped on the cryptocurrency exchange
Hong Kong-based crypto exchange Bitforex suspended withdrawals for at least three days without giving any reason. Before the suspension, approximately $56 million in crypto had been withdrawn from the exchange’s wallets. As Rug pull-whistleblower ZachXBT noted on X on February 23, three Bitforex hot wallets saw an outflow of approximately $56.5 million in cryptocurrency. Shortly after, Bitforex stopped trading.
The exchange’s X account has not been updated since May 2023. Bitforex users are reporting issues with their accounts on its official channel on Telegram, ranging from not being able to log into their accounts to the dashboard not showing any assets. Several users shared the pop-up screen, reporting that they were blocked from accessing the company’s site.
He tried to open the Bitforex page but encountered the same problem. However, some specific pages of the exchange’s site are still live, such as the Jan. 31 announcement that Bitforex’s then-CEO Jason Luo was leaving the company. This is the last announcement issued by Bitforex until press time. In September 2023, Bitforex was among the leading global altcoin exchanges by value. Daily trading volume was approximately $2.6 billion in crypto. CoinMarketCap does not currently provide live data on Bitforex.
The exchange has two large cryptocurrencies
Factors such as users, the exchange’s failure to respond to their questions on platforms such as X and Telegram, and the CEO’s resignation a month ago also increase concern. It is known that Bitforex holds 18% of the Tellor Tributes (TRB) supply and 7% of the ECOMI (OMI) supply. This means that the exchange has significant power over these altcoins and can cause sudden price fluctuations.
Until an official statement comes from Bitforex, it is important for investors to be cautious and not panic. In 2018, Bitforex faced lawsuits filed by users for creating fake volume. In April 2023, the Japan Financial Services Agency (FSA) accused Bitforex of conducting illegal activities in the country. Bitforex was among the world’s largest cryptocurrency exchanges in terms of transaction volume in September 2023.
AAX also carried altcoins
Last week, another Hong Kong exchange, Atom Asset Exchange (AAX), moved approximately $55.6 million worth of Ether from its wallets. AAX ceased all operations on November 13, 2022, just two days after FTX filed for bankruptcy. Following its closure, AAX’s former CEO Thor Chan and board member Haoming Liang were arrested by Hong Kong police in 2022. However, the anonymous AAX founder is allegedly still at large with over 230 million Hong Kong dollars ($29.41 million) worth of user funds and private keys that provide access to exchange wallets.
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For the rest of the article, Panic in the Crypto Exchange: Transactions Stopped, Eyes on These 2 Altcoins!