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 This transaction pause came shortly after an alleged $56.5 million was withdrawn from the exchange’s hot wallets.
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Bitforex suspends withdrawals amid $56.5 Million Outflow
Crypto investigator Zachxbt reports the Bitforex team stopped all forms of communication with its user base after the incident. On February 23, Bitforex stopped all withdrawal activities without telling its users why. Online cryptocurrency detective Zachxbt highlighted the need for more official communication regarding the reasons behind the freeze.
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.
Seeing some suspicious activity with the crypto exchange @bitforexcom.
— ZachXBT (@zachxbt) February 26, 2024
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
Bitforex Team’s Silence Raises Questions
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.
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.
Sudden Suspension of Withdrawal in Speculations to Exit Scam
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.
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
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.
Conclusion
To conclude, Bitforex’s sudden suspension of withdrawals, paired with the mysterious disappearance of $56.5 million and the exchange’s silence, has sparked concerns among its users and the cryptocurrency community. Speculations about an exit scam and the lack of official communication have further exacerbated the situation, leaving many seeking answers and clarity from Bitforex.