news.bitcoin.com
Bitforex, a centralized cryptocurrency exchange, abruptly halted user withdrawals. This sudden action occurred just moments after a reported $56.5 million was removed from the platform’s hot wallets. According to online crypto investigator Zachxbt, the Bitforex team has ceased all communication with users.
No Official Word From the Bitforex Team
On Feb. 23, Bitforex, a cryptocurrency exchange, abruptly halted withdrawal processes. According to the online crypto investigator Zachxbt, there has been no official announcement explaining why users cannot access their funds. In a post on X (formerly Twitter), Zachxbt said the sudden freeze on withdrawals had been preceded by an unexplained outflow of $56.5 million from the crypto exchange’s hot wallet.
Seeing some suspicious activity with the crypto exchange @bitforexcom.
On Feb 23 their hot wallets saw outflows of ~$56.5M. Shortly after this time withdrawals stopped processing with no official announcements having been made since.
Currently users are asking questions on… pic.twitter.com/gFEcwExHKh
— ZachXBT (@zachxbt) February 26, 2024
Since then, Bitforex users have been seeking answers and updates through the crypto exchange’s official social media channels. However, the Bitforex team has reportedly become unresponsive, according to Zachxbt. Unconfirmed rumors suggest that one administrator of Bitforex’s social media channels may have changed their username.
The freeze on withdrawals, which social media users have characterized as an exit scam, is said to have occurred nearly a month after the resignation of CEO Jason Luo. Bitforex users have since then reportedly faced numerous challenges which culminated in the unannounced freeze. In addition to the alleged silence from Bitforex’s social media administrators, the crypto exchange’s website was offline on Feb. 26.
Meanwhile, in the same X post, Zachxbt told his followers to monitor three wallets which presumably belong to Bitforex insiders behind the massive outflow.
What are your thoughts on this story? Let us know what you think in the comments section below.