BitForex crypto exchange allegedly defrauds customers, leaving them bereft of $55.6m.
Blockchain investigator ZachXBT has raised concerns about suspicious activity on the BitForex crypto exchange, suggesting that the platform may have conducted an exit scam. On February 23, the exchange reportedly withdrew around $56.5 million worth of cryptocurrency from its hot wallets, after which it halted all withdrawals without providing an official explanation. ZachXBT highlighted that BitForex still holds significant amounts of TRB and OMI tokens, adding to the urgency of the situation. The investigator has identified specific wallets associated with this activity and has called for continued monitoring of the situation for any further developments.
In January, BitForex underwent a leadership change as CEO Jason Luo resigned. While Luo expressed confidence in the capabilities of the new leadership team in a blog post, his departure has raised speculation given the recent events. BitForex, which was established in 2018, has faced numerous user complaints, particularly regarding account bans allegedly linked to KYC requirements. As of now, the exchange has not released any public statements regarding the recent developments.
