Bitforex Freezes Withdrawals Amid $56.5 Million Outflow and Radio Silence
Crypto exchange Bitforex halts withdrawals after $56.5m disappearance from hot wallets | Credit: Pixabay
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Key Takeaways
- Bitforex abruptly halted withdrawals, leaving users in the dark.
- This suspension coincided with millions disappearing from Bitforex’s hot wallets, raising red flags.
- Bitforex has gone silent, offering no explanation and failing to respond to user inquiries.
Bitforex, a prominent centralized cryptocurrency exchange, unexpectedly suspended withdrawals for its users. This transaction pause came shortly after an alleged $56.5 million was withdrawn from the exchange’s hot wallets.
Crypto investigator Zachxbt reports the Bitforex team stopped all forms of communication with its user base after the incident.
Mysterious $56.5 Million Outflow
On February 23, Bitforex stopped all withdrawal activities without telling its users why.
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
Online cryptocurrency detective Zachxbt highlighted the need for more official communication regarding the reasons behind the freeze.
Bitforex Withdrawals Frozen, Millions Vanish, Communication Goes Dark
Zachxbt also noted that this abrupt suspension came after the mysterious disappearance of $56.5 million from Bitforex’s hot wallet. This, in turn, raised concerns among the platform’s user base.
Following the incident, Bitforex users have turned to the exchange’s official social media accounts in search of explanations and updates. Despite their efforts, the Bitforex team has seemingly gone silent, with no responses being provided to user inquiries.
The bitforex incident is only going to speed the end of this coin. If veves want the masses and big IP partners this kind of association is not a good look. Only a matter of time before they just kill the coin. It has no use case anyway
— King Ding nW⭕ (@King_Ding_Dong8) February 25, 2024
There are also unverified reports indicating that an administrator of Bitforex’s social media accounts might have altered their username, further complicating the situation for users seeking clarity and answers.
Bitforex Halts Withdrawals Amid Exit Scam Speculation
The sudden stoppage of Bitforex withdrawal services has led users on social media to speculate about an exit scam, occurring nearly a month after the departure of its CEO, Jason Luo .
Users of the cryptocurrency exchange have reportedly encountered numerous issues leading up to the unexpected freeze on withdrawals. Further fueling concerns, Bitforex’s social media administrators have allegedly ceased communication. Furthermore, the exchange’s website was offline on February 26.
In a related development, Zachxbt advised his Twitter followers to keep an eye on three specific wallets, believed to be connected to Bitforex insiders, possibly linked to the significant funds outflow.
Teuta Franjkovic
