- The halt occurs after token withdrawals and the CEO’s resignation in January.
- BitForex has been under regulatory pressure in Japan and faces claims of fake trading volumes.
Users of Hong Kong-based cryptocurrency exchange BitForex are reportedly experiencing withdrawal issues. The exchange has not given reasons for stopping the withdrawals, and its team is unresponsive to user requests.
The withdrawal halt happened after three hot wallets of the crypto exchange witnessed outflows of approximately $56.5 million. This comes barely a month after Jason Luo stepped down as BitForex CEO after serving six years at the company. The exchange has also not updated its X (formerly Twitter) account since May 2023.
The string of events elicits concerns among troubled customers who haven’t received official communication from the exchange. Some users reported having problems with the accounts, including being unable to enter them into the dashboard. Other users reported being blocked from accessing BitForex’s website.
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Illegal Operations in Japan
While it is unclear what prompted BitForex to cease withdrawals, the crypto exchange has been under regulatory pressure. In April 2023, BitForex was accused of violating Japan’s fund settlement laws. According to Japan’s Financial Services Agency (FSA), the exchange also operated without proper registration.
The troubles are a big blow to an exchange that was once leading by daily trading volumes last year. As of September 2023, the daily trading volume at BitForex was recorded at $2.6 billion. However, a 2019 Chainalysis report claimed that the exchange had been faking its trading volumes.