Hong Kong-based Crypto Exchange BitForex Suspends Withdrawals After $56 Million is Withdrawn from Wallets
A top Hong Kong-based crypto exchange, BitForex, has temporarily stopped withdrawals on its platform following the withdrawal of more than $56 million from its wallets last week. The incident has raised concerns about suspicious activity and the lack of communication from the exchange.
According to on-chain investigator ZachXBT, BitForex engaged in some “suspicious activity” on February 23 when approximately $56.5 million was withdrawn from its hot wallets. Shortly after this incident, withdrawals on the platform ceased without any official announcements made by the exchange.
ZachXBT also highlighted that BitForex users have been left in the dark as their inquiries remain unanswered by officials on BitForex’s X and Telegram channels. Additionally, BitForex’s CEO had stepped down just a month prior to these events, adding further uncertainty to the situation.
BitForex holds a significant supply of two altcoins – Tellor Tributes (TRB) and ECOMI (OMI). The exchange reportedly holds 18% of the TRB supply and 7% of the OMI supply.
Tellor Tributes is a decentralized oracle system that allows miners on the Ethereum network to retrieve external data and store it on-chain for smart contract access. The TRB token is utilized for payment purposes and governance within the protocol.
On the other hand, OMI is the native utility token used on the VeVe digital collectible platform. OMI tokens serve as a medium of exchange within the ECOMI digital collectible ecosystem.
At present, BitForex has not released any statements regarding these claims or addressed the concerns raised by users and investigators.
Hot Take: BitForex Faces Controversy Amidst Suspicious Activity
It appears that Hong Kong-based crypto exchange BitForex is facing a major controversy after suspending withdrawals following the withdrawal of over $56 million from its wallets. The incident has sparked concerns about suspicious activity and the lack of transparency from the exchange.
🔍 On-chain investigator ZachXBT has shed light on the situation, revealing that BitForex’s hot wallets experienced an outflow of approximately $56.5 million on February 23. Shortly after this event, withdrawals on the platform suddenly halted without any official announcements from BitForex.
🤔 Users of BitForex have been left frustrated as their inquiries go unanswered by officials on BitForex’s X and Telegram channels. Adding to the uncertainty, BitForex’s CEO had stepped down just a month prior to these events.
💼 BitForex holds a significant supply of two altcoins, Tellor Tributes (TRB) and ECOMI (OMI). The exchange reportedly holds 18% of the TRB supply and 7% of the OMI supply.
🌐 Tellor Tributes functions as a decentralized oracle system that enables miners on the Ethereum network to retrieve external data and store it on-chain for smart contract access. The TRB token is used for payments and governance within the protocol.
💡 Meanwhile, OMI serves as the native utility token for the VeVe digital collectible platform. OMI tokens act as a medium of exchange within the ECOMI digital collectible ecosystem.
⚠️ As of now, BitForex has not issued any statements addressing these allegations or providing clarity to its users and investigators.
In conclusion, the suspension of withdrawals by BitForex, coupled with large-scale outflows from its wallets, has raised serious concerns about suspicious activity within the exchange. The lack of communication from BitForex only adds to the uncertainty surrounding these events. As a crypto enthusiast, it is essential to stay informed about such incidents and exercise caution when dealing with exchanges.
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