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Blockchain sleuth ZachXBT alarmed the crypto community about suspicious activity with the BitForex crypto exchange.
In an X post on Feb. 26, blockchain sleuth ZachXBT flagged concerning activity on the BitForex crypto exchange, alleging that the platform might have exit scammed. According to the investigator, the exchange withdrew approximately $56.5 million worth of crypto from its hot wallets on Feb. 23. Following that anomalous withdrawal, the exchange ceased withdrawals without any official explanation, ZachXBT added.
Seeing some suspicious activity with the crypto exchange @bitforexcom.
— ZachXBT (@zachxbt) February 26, 2024
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
In January, BitForex underwent a change in leadership as CEO Jason Luo stepped down. While Luo expressed confidence in the new leadership team’s capabilities in a blog announcement, the circumstances surrounding his departure have fueled speculation amidst recent events.
“I believe they will guide BitForex towards even greater horizons. I will continue contributing my wisdom and strength to BitForex because this is my eternal commitment to this home.”
Jason Luo
ZachXBT noted that the exchange still holds significant portions of the TRB and OMI tokens, making the situation even more critical. ZachXBT has identified specific wallets linked to this activity, urging continued monitoring for further developments.
Established in 2018, BitForex encountered numerous user complaints, notably concerning account bans supposedly linked to KYC requirements. As of press time, the exchange has not released any public statements regarding the recent developments.