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Amidst $56 million in outflows, BitForex ceased withdrawals, leading to user access difficulties.
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Regulatory apprehensions persist following Japan’s FSA accusation against BitForex in April 2023.
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The situation at BitForex echoes AAX’s shutdown, raising inquiries regarding management practices and regulatory compliance.
Amid a series of concerning developments surrounding its operations and management, BitForex, a leading cryptocurrency exchange headquartered in Hong Kong, has implemented a minimum three-day suspension of withdrawals, leaving users in a state of uncertainty with the sudden halt.
Withdrawal Suspension and Alleged Outflows: BitForex’s Troubling Developments
BitForex’s recent decision to suspend withdrawals comes amidst a series of concerning events that have rocked the exchange. Prior to the suspension, approximately $56 million in cryptocurrency was withdrawn from BitForex’s wallets, as revealed by on-chain investigator ZachXBT. According to reports, three of BitForex’s hot wallets experienced outflows totaling around $56.5 million before transaction processing was abruptly halted. This sudden move has left users grappling with various issues, from being unable to access their accounts to encountering empty asset dashboards.
Adding to the confusion, BitForex’s X account has remained stagnant since May 2023, raising significant questions about the exchange’s communication and transparency practices. Moreover, regulatory concerns have loomed over BitForex since April 2023 when Japan’s Financial Services Agency (FSA) accused the exchange of breaching fund settlement laws. Despite these allegations, BitForex has managed to evade substantial attention from regulators and the media.
The unfolding situation with BitForex draws unsettling parallels to the closure of another Hong Kong-based exchange, Atom Asset Exchange (AAX), in November 2022. AAX abruptly ceased operations shortly after FTX filed for bankruptcy, leading to the arrest of AAX’s former CEO and board member by Hong Kong police. Notably, the founder of AAX remains at large, allegedly with millions of dollars in users’ funds and access to exchange wallets.
BitForex Under Scrutiny: Website Accessibility Issues and CEO Departure
Amidst mounting concerns, BitForex, a significant player in the cryptocurrency exchange realm based in Hong Kong, is facing a tumultuous period marked by website accessibility issues and the departure of its CEO.
The situation has been exacerbated by reports of users encountering difficulties accessing the BitForex website, further adding to the atmosphere of uncertainty surrounding the platform. Additionally, the abrupt departure of the CEO has raised eyebrows and intensified speculation about the internal dynamics and stability of BitForex.
Combined with the ongoing suspension of withdrawals and alleged outflows totaling $56 million, these recent developments have heightened scrutiny on BitForex’s practices and management decisions. Investors and users alike are closely monitoring the situation, eager for clarity and reassurance amid the uncertainty surrounding the exchange.
