BitForex, a cryptocurrency exchange based in Hong Kong, has halted withdrawals and ceased communication with users, sparking a police investigation. The sudden suspension of transactions, which has lasted for at least three days, came after $56 million worth of cryptocurrency was moved from BitForex's hot wallets. On-chain investigator ZachXBT reported the suspicious activity, noting significant outflows just before the exchange stopped processing withdrawals.
The disruption has left many users unable to access their accounts, with some reporting that their account dashboards no longer display any assets. Attempts to access the BitForex website have also been unsuccessful, as users encounter block notifications.
This incident raises serious concerns about the security and operational integrity of BitForex, which was previously among the leading global crypto exchanges with a daily trading volume of around $2.6 billion. The exchange had also faced regulatory scrutiny from Japan’s Financial Services Agency for operating without proper registration.
The police investigation aims to uncover the reasons behind the halted withdrawals and whether there was any fraudulent activity involved. In the meantime, BitForex users are advised to stay informed through official channels and prepare for potential long-term access issues to their funds.
Disclaimer: Please note that the information provided in this article is based on the referenced research articles. It is essential to conduct further research and analysis before making any investment decisions. The cryptocurrency market is highly volatile, and investors should exercise caution and consult with financial professionals before engaging in cryptocurrency trading or investment activities.
