Reports are circulating about suspicious outflows and halted withdrawals on cryptocurrency exchange BitForex.
$56.5M Outflow
Crypto investigator ZachXBT has been monitoring the situation, revealing that on February 23, approximately $56.5 million was transferred out of BitForex hot wallets. Following this significant outflow, withdrawals were abruptly suspended on the exchange.
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
BitForex has yet to issue official statements regarding the situation, raising concerns about the project and leaving users in the dark.
Users Flocks to X/Telegram
Concerned users have been swarming the X (Twitter) account and Telegram channel of BitForex to contact the exchange’s team for answers. Adding to the concern is that BitForex’s CEO stepped down from their role just one month ago.
One user, who said they have roughly 43,000 USDT alongside other tokens locked on their BitForex account, expressed frustration on Telegram, saying:
“Dear respected admin,, mona sir this,, side i m from india assam state .i m belonging very poor family. I have 43000usdt and 4k wild coin and others 8more coin 56k in bitforex. i m very sad now why my all assets are zero.”
Another user also posted: “What happens to our trades is what I want to know? Were they closed with the maintainance? Are all my funds liquidated now? Coins dropped 10%+ since yesterday and I’ve had multiple trades opened… will I loose all funds?”
The BitForex team has yet to respond to users. Notably, the last X (Twitter) post from the team was from five days ago. Moreover, their website is currently down.
Notably, BitForex holds a considerable amount of specific tokens: 18% of the TRB supply and 7% of the OMI supply.
The development has sparked a wave of reaction from the crypto community, with many suspecting BitForex to be an exit scam. Whether it’s a scam or not, only time will tell.
