Is BitForex the Next FTX? Withdrawals Halted with No Warning

Hong Kong-based cryptocurrency exchange BitForex has sent shockwaves through the crypto community by abruptly halting user withdrawals without any prior warning. The sudden move, which has left users in a state of uncertainty, marks a troubling development for one of the prominent players in the digital asset trading sphere.

According to reports, BitForex suspended withdrawals for at least three days, catching many investors off guard. The exchange’s hot wallets reportedly experienced significant outflows, totaling approximately $56.5 million, on February 23. Since then, users have been left in the dark as BitForex has remained silent, with no official announcements or updates provided via its social media channels or website.

Adding to the alarm is the fact that BitForex’s official social media accounts have been silent since February 21st. Desperate users are flooding the company’s Telegram channel, demanding answers. This situation is compounded by the news that the exchange’s CEO stepped down a mere month ago.

BitForex Potential Impact on TRB and OMI

Adding fuel to the fire, the exchange holds significant amounts of Tellor ($TRB) and ECOMI ($OMI) tokens – 18% of the TRB supply and 7% of the OMI supply. This could have serious repercussions on the prices of these cryptocurrencies if BitForex is forced to liquidate its holdings.

BitForex Screen short

Reports of accessibility issues have heightened concerns about BitForex. Users face blocks when trying to access the exchange’s website. Of course, this development has heightened unease among investors, leaving them to speculate about the reasons behind the exchange’s sudden withdrawal suspension and its implications for their funds.

Moreover, the timing of these events is particularly noteworthy, considering BitForex’s previous run-ins with regulatory authorities. In the past, the exchange has faced allegations of violating settlement laws in Japan. The exchange reached a peak daily trading volume of $2.6 billion in the third quarter of 2023. However, ongoing regulatory scrutiny and the recent withdrawal halt have tarnished its reputation.

Above all, users eagerly await updates from BitForex on fund status, with lingering questions about the exchange’s future and wider crypto impact. The lack of transparency and communication from BitForex has only fueled speculation and raised alarms among investors.