$56.5M Withdrawn From BitForex Crypto Exchange; Users Blocked
Cryptocurrency exchange BitForex suffered an abrupt service outage this week following the withdrawal of approximately $56.5 million worth of crypto assets from company wallets.
The platform has provided no explanation, while users across social media report account lockouts.
- BitForex hot wallets saw a $57 million exit on Feb. 23, per the investigator.
- The company is unresponsive, as users complain of its inability to withdraw funds.
- The site is now offline with a ‘blocked’ message amid an outage.
According to on-chain analyst ZachXBT, blockchain data indicates significant funds were being withdrew from BitForex less than 24 hours before suspensions began. Neither the company nor its recently departed CEO have addressed the curious timing or current status.
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Concerns raise about current status of BitForex
With the exchange’s website suddenly inaccessible and most user inquiries unanswered, concern mounts over whether BitForex fell victim to an internal or external hack.
At minimum, the absolute lack of transparency around the lengthy service disruption risks permanent reputational damage.
Various users have taken to social media, asking about their inaccessible accounts. The debacle also raises asset security fears given BitForex’s sizable cryptocurrency reserves under management as one of the market’s prominent trading venues.
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The company reportedly holds 18% of the TRB supply and 7% of the OMI supply, which could face liquidation peril if solvency issues emerge.
For now, only speculation exists, with no response from the exchange’s team. However, the sudden service suspension and unresponsiveness have triggered fear and uncertainty amongst its users.
