In recent days, Hong Kong-based crypto exchange BitForex has raised concerns among its users as the platform appears to have gone entirely dark. The suspension of its website and trading application on Feb 23 has left users unable to initiate withdrawals or access the exchange. This comes as a shock, considering the exchange boasted over $2 billion in trading volume as recently as Feb 24. However, data shows that trading volume decreased significantly from $2.5 billion to $1 billion between Feb 22 and Feb 24 before flatlining. Moreover, normalized data suggests that BitForex may have inflated its volumes by up to 100 times.
Adding to the mystery surrounding BitForex, the sudden resignation of CEO Jason Luo a month ago has raised further suspicion. In his statement, Luo mentioned stepping down but expressed his continued commitment to the exchange. Meanwhile, the exchange holds a significant portion of TRB and OMI token supplies, prompting concerns about its stability. Specifically, BitForex possesses 18% of TRB and 7% of OMI, raising flags about the exchange’s operations and intentions.
As users seek answers and clarification, the lack of communication from BitForex is alarming. Withdrawals have ceased without any official communication from the exchange, leaving users in the dark about the status of their funds. On-chain activity for the exchange’s native BF token has been minimal, indicating a lack of movement or transparency within the platform. The absence of updates on CoinmarketCap and the inactivity of the exchange’s official Telegram channel further contribute to the growing concern among users.
Despite a security rating of ‘CCC’ by Certified, there are no specific details available about BitForex’s insurance policy or security measures. The deletion of an admin account on Telegram and the lack of responses from other admins have fueled speculation about potential security risks and the overall stability of the exchange. With over 1,000 users online and awaiting a response from BitForex, the uncertainty surrounding the platform’s future continues to grow.
The dark reality facing BitForex users underscores the importance of transparency, communication, and trust in the crypto industry. The recent events and suspicious activity surrounding the exchange highlight the need for greater scrutiny and due diligence when choosing a cryptocurrency exchange. As the situation unfolds, it remains to be seen how BitForex will address the concerns of its users and regain their trust in the face of uncertainty.
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