Following the suspension of its website and trading application on Feb 23, Hong Kong-based crypto exchange BitForex has left users in the dark. With over $2 billion in trading volume as recently as Feb 24, the sudden disappearance of the exchange has raised eyebrows. Data analysis suggests that BitForex may have inflated its volumes by up to 100 times, with normalized data showing a significant drop in trading volume from $2.5 billion to $1 billion between Feb 22 and Feb 24 before flatlining at just $25 million on Feb 22. These discrepancies point to potential fraudulent activities within the exchange.
The lack of communication from BitForex regarding the suspension of withdrawals and access to the platform has left users scrambling for answers. Crypto investigator ZachXBT reported outflows of approximately $56.5 million from BitForex’s hot wallets on Feb 23, after which withdrawals ceased without any official update from the exchange. Users have turned to platforms like Telegram for information, but even there the communication has been scarce. The sudden departure of CEO Jason Luo a month ago adds to the suspicion surrounding BitForex, as his statement about stepping down without much explanation has raised questions about the company’s stability and future.
Analysis of BitForex’s holdings reveals further red flags, with the exchange holding a significant portion of TRB and OMI token supplies – specifically 18% of TRB and 7% of OMI. The lack of on-chain activity for the exchange’s native BF token is also concerning, with minimal movement within the past 11 days. The absence of updates on CoinmarketCap and the inactivity on the exchange’s official Telegram channel suggest a lack of transparency and accountability on BitForex’s part. The deletion of an admin account and the silence from other admins further add to the mystery and uncertainty surrounding the exchange’s operations.
As users with funds stuck on the exchange continue to await any form of communication or resolution, the dark reality of BitForex becomes clearer. The questionable trading volumes, lack of transparency, and suspicious activities point towards a potential scam or exit strategy by the exchange. The absence of official updates, the sudden departure of the CEO, and the questionable holdings of the exchange all contribute to the air of doubt and distrust surrounding BitForex. Users are left with little information and dwindling hopes of recovering their funds, highlighting the risks associated with trading on unregulated and opaque platforms like BitForex.
The mysterious disappearance of BitForex and the lack of communication from the exchange raise serious concerns about the safety and security of users’ funds. The potential fraudulent activities, questionable trading volumes, and doubtful holdings all point towards a troubling reality for BitForex users. It serves as a stark reminder of the risks involved in the cryptocurrency space and the importance of due diligence when choosing a crypto exchange.