In response to a sizable withdrawal of money from its hot wallets, the exchange has suspended user withdrawals.
- ZachXBT, a cybersecurity expert, has expressed concern regarding BitForex, a cryptocurrency exchange.
- Over the past week, there have been notable withdrawals from the exchange.
- Jason Luo, the CEO of BitForex, left the exchange earlier this year.
Because the cryptocurrency market is pseudonymous, it is frequently vulnerable to threats and is used by dishonest actors to defraud gullible investors through a variety of hacks and scams.
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Beyond the threats from the outside, the industry is also beset by illegal internal activities such as exit scams, in which projects or businesses fool investors into believing they are trustworthy before suddenly dissipating, leaving them to deal with substantial losses.
CryptoCaster Quick Check:
The cryptocurrency exchange BitForex is currently in the news since it may have vanished from its users’ lives.
Fears About the BitForex Scam
Blockchain cybersecurity ZachXBT warned the cryptocurrency community on Monday, February 26, about unusual activity on BitForex and raised the possibility of a rugpull scam.
The exchange allegedly stopped allowing asset withdrawals on its platforms on February 23 in response to a startling $56.5 million withdrawal from its hot wallets, which marked the beginning of the unusual activity.
Users’ concerns were heightened when Bitforex’s official website stopped working and prevented access. Furthermore, many user complaints remain unanswered on a number of the exchange’s official communication channels, including Telegram and X, which have gone silent.
The events transpire after Jason Lou, the former CEO of BitForex, left the exchange in January without providing an explanation. Users have since taken to social media platform X to air their grievances, fueling speculation of a well-planned scam due to the timing of both events and the lack of transparency from the exchange.
BitForex Fraud: People Want Answers
Nearly 170 users have bombarded the exchange with inquiries regarding its whereabouts and requests for access to their assets and wallets since January 24.
Before the exchange was shut down, the prices of a number of popular tokens dropped by roughly 60% to 80%, as noted by X user Alxchivas. According to Alxchivas, this was probably done to “attract more money,” entice investors to make a cheaper purchase before the company went dark.
If the exchange disappears, users have advised reporting a legal loss to regulatory bodies. As of the time of publication, neither BitForex nor its executives had released an official statement.
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