Hong Kong-based crypto exchange BitForex faced scrutiny after the company website went offline after the withdrawal of $57 million from its hot wallets on February 23. The exchange also halted withdrawal for at least 3 days.
The incident was first reported by detective ZachXBT on X (formerly Twitter), raising concerns about the exchange’s operations.
The BitForex team has not issued any official statements, leaving users seeking answers on X/Telegram. A month before the incident, CEO Jason Luo announced his departure, expressing confidence in the new leadership team’s ability to guide the exchange towards greater horizons.
In addition, the sudden withdrawal of funds, the halt of users access to withdrawals, and the subsequent website shutdown have intensified doubts surrounding BitForex’s operations.
According to a report by digital assets data provider Kaiko on February 9 revealed that BitForex had the highest number of pairs with outsized volumes relative to their depth, raising suspicions of potential wash trading.
Additionally, the report highlighted concerns regarding the Litecoin (LTC) and Filecoin (FIL) pairs on BitForex, where volume figures appeared inconsistent with trade dynamics observed on reputable exchanges like Binance and Coinbase.