The Hong Kong-based crypto exchange BitForex has recently faced a sudden and unexpected shutdown, leaving users with their funds stuck on the platform. The suspension of both the website and trading application on Feb 23 has caused a stir in the crypto community, with concerns rising about the exchange’s credibility.
Questionable Trading Volumes
BitForex boasted over $2 billion in trading volume just a day before the shutdown. However, data analysis suggests that the exchange may have inflated its volumes by up to 100 times. Normalized data shows a significant difference in reported trading volume compared to actual web traffic statistics. This discrepancy raises questions about the legitimacy of BitForex’s operations.
The timing of CEO Jason Luo’s decision to step down a month before the shutdown adds to the suspicion surrounding BitForex. With the exchange holding a substantial portion of TRB and OMI token supplies, users are left seeking answers about the future of their investments. The lack of communication from the exchange only adds to the uncertainty surrounding its stability.
BitForex’s native BF token has seen limited on-chain activity in recent days, with little movement recorded. The exchange’s official Telegram channel, once a source of communication with users, has now become inactive. Admins have been unresponsive, and one has even deleted their account, leaving users in the dark about the status of their funds.
Certified’s security rating of ‘CCC’ for BitForex suggests that the exchange had an insurance policy in place. However, the lack of specific details about this policy raises concerns about the safety of user funds. With no activity on the platform’s X account and outdated data on CoinmarketCap, users are left wondering about the security of their investments.
Awaiting Clarity
As BitForex users await clarity on the situation, the lack of communication from the exchange continues to fuel uncertainty. With funds stuck on the platform and no updates from the company, users are left with valid reasons to worry about the safety of their investments. The dark reality facing BitForex users highlights the importance of transparency and communication in the cryptocurrency space.
Leave a Reply