BitForex Disappears With Millions, Prompting Outrage and Investigations

BluShark Media
3 min readFeb 27, 2024

In a shocking turn of events that has rattled the cryptocurrency community, BitForex, a well-known crypto exchange based in Hong Kong, has abruptly halted operations. This sudden closure follows the mysterious withdrawal of approximately $57 million from the exchange’s hot wallets on February 23, 2024, leading many to suspect an exit scam. The incident has left countless users in disarray, unable to access their funds, and questioning the security and reliability of crypto exchanges.

The closure of BitForex came without warning, with significant digital currency outflows detected by ZachXBT, an on-chain investigator. The exchange’s trading volume plummeted to zero overnight, as reported by CoinMarketCap and CoinGecko, signaling a complete operational shutdown. Users of BitForex have taken to the exchange’s official Telegram channel to express their frustrations and concerns, only to find their messages selectively deleted and community managers turning unresponsive.

BitForex’s vague announcement of “unscheduled maintenance” has done little to alleviate the fears of its users. The lack of communication from the exchange, coupled with the deletion of user complaints, has only fueled speculation of an exit scam. The situation is reminiscent of previous crypto exchange scandals, highlighting the vulnerabilities within the sector.

The impact of BitForex’s sudden disappearance extends beyond its direct users. Nearly 7% of the OMI token supply, used within the Veve ecosystem for trading licensed NFTs from giants like Marvel and Disney, was held by BitForex. Following the incident, the value of OMI plummeted by 88%, showcasing the far-reaching consequences of the exchange’s actions.

In the aftermath of BitForex’s closure, a Telegram group titled “Scammed by BitForex” has emerged, where over 150 affected users are sharing their experiences and coordinating efforts for collective action. These users are not only seeking justice but are also raising awareness about the risks associated with unregulated crypto exchanges. Complaints have been filed with Hong Kong’s Securities and Futures Commission (SFC), and there is a push for broader public awareness through contact with crypto influencers and educators.

This incident serves as a stark reminder of the risks inherent in the cryptocurrency market, especially with exchanges that operate without proper regulatory oversight. The parallels with the infamous QuadrigaCX case, where funds vanished following the death of its founder, are alarming. It underscores the need for greater transparency, security, and regulatory compliance within the crypto industry to protect investors and maintain trust in digital currencies.

As the community waits for more information and possible regulatory action, the BitForex saga is a cautionary tale about the importance of due diligence and the potential pitfalls of the rapidly evolving crypto landscape.

--

--

BluShark Media

BluShark Media is your trusted guide for web3, blockchain, NFTs, gaming & AI in the transformative digital world.