Crypto Withdrawals Frozen at BitForex Without Explanation After $56M Outflow

BitForex, a cryptocurrency exchange based in Hong Kong, has recently suspended withdrawal services without any official explanation, leaving users in the dark.

This happened after it was reported that millions worth of cryptocurrencies were transferred from the crypto exchange's wallets just a day before the freeze.

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The unexpected halt was first brought to light by blockchain investigator ZachXBT, who noted that approximately $56.5 million of digital assets flowed out of three BitForex hot wallets.

Since the freeze, users went to BitForex's official Telegram to report problems, ranging from being unable to log into their accounts to missing assets on their dashboards. The website is inaccessible at the time of writing.

Amidst growing concerns, BitForex's communication channels have gone silent, with no updates on their X account since February 21.

Some crypto community members are speculating whether it is an exit scam; however, there are not enough details to make such a statement.

BitForex also encountered challenges in April 2023, when it came under scrutiny by Japan's Financial Services Agency (FSA) for allegedly violating the nation's fund settlement laws by operating without the necessary registration. Since this incident, BitForex has stayed off the regulatory radar.

This incident adds to the growing list of concerns among cryptocurrency exchange users, highlighting the importance of transparency and regulatory compliance in the sector.

In other news, related to crypto exchanges, the bankrupt FTX has received court approval to sell its Anthropic shares, potentially adding over $1 billion to its cash reserves, which would be used for customer repayments.