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Crypto Exchange Halts Withdrawals Amidst $56 Million Outflow

Hong Kong-based cryptocurrency exchange BitForex has ceased withdrawals for a minimum of three days without offering an explanation.

Prior to the suspension, approximately $56 million in cryptocurrency had been withdrawn from the exchange’s wallets.

According to an X post on February 23, on-chain investigator ZachXBT stated that three BitForex hot wallets experienced outflows of approximately $56.5 million in cryptocurrencies before the exchange halted transaction processing.

The exchange’s X account has not seen any updates since May 2023

BitForex users are encountering issues with their accounts, ranging from being unable to access them to finding that the dashboard displays no assets.

Numerous users have shared a pop-up screen indicating they are blocked from accessing the company’s website.

Attempts by Cointelegraph to access the BitForex website encountered the same issue. However, certain pages of the exchange’s website remain active.

For instance, an announcement dated January 31, disclosing the departure of BitForex CEO Jason Luo, was still accessible on the website at the time of writing.

READ MORE: Bitcoin Halving Threatens US Miner Profitability and Sparks Global Migration Talks

In September 2023, BitForex was among the foremost global cryptocurrency exchanges in terms of capitalization, with a daily trading volume of approximately $2.6 billion in cryptocurrency.

Currently, CoinMarketCap does not provide real-time data on BitForex.

In April 2023, Japan’s Financial Services Agency (FSA) accused BitForex of breaching the country’s fund settlement laws, alleging that the exchange conducted business in the country without proper registration.

GHowever, BitForex has not attracted significant attention from regulators or the media since then.

Last week, another Hong Kong-based exchange, Atom Asset Exchange (AAX), transferred around $55.6 million worth of Ether (ETH) from its wallets.

AAX ceased all operations on November 13, 2022, just two days after FTX filed for bankruptcy. Following its closure, AAX’s former CEO Thor Chan and board member Haoming Liang were arrested by Hong Kong police in 2022.

Nevertheless, the founder of AAX, whose identity remains undisclosed, is purportedly still evading authorities with 230 million Hong Kong dollars ($29.41 million) worth of users’ funds and private keys granting access to exchange wallets.

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Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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