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CoinGecko data reveals a substantial drop in BitForex’s trading volume from $2.5 billion to $1 billion between February 22 and 24 before stabilizing. However, scrutiny of normalized data suggests an overstatement of volumes by up to 100 times.
Some shady and suspicious activity seems to be taking place at Hong Kong crypto exchange BitForex, as its website went dark following a $57 million in withdrawals from its hot wallets that took place last week, on February 23.
According to blockchain investigator ZachXBT, the BitForex platform has ceased processing any further withdrawals. Besides, users are also reporting a lack of responsiveness from the BitForex team regarding their inquiries.
Seeing some suspicious activity with the crypto exchange @bitforexcom.
On Feb 23 their hot wallets saw outflows of ~$56.5M. Shortly after this time withdrawals stopped processing with no official announcements having been made since.
Currently users are asking questions on… pic.twitter.com/gFEcwExHKh
— ZachXBT (@zachxbt) February 26, 2024
Additionally, attempts to visit the BitForex website result in users encountering a page displaying the message:
“Sorry, you have been blocked.”
The exchange’s X account has remained inactive since May 2023. As a result, BitForex users on its official Telegram channel are voicing concerns about various account-related issues. These range from difficulties accessing accounts to dashboards displaying no assets. Several users have also reported encountering a pop-up message indicating they are blocked from accessing the company’s website.
Things haven’t been going well at BitForex off-lately. Last month, BitForex CEO Jason Luo left the company. However, during his departure, Luo stated:
“A new leadership team is poised to take the reins, and I believe they will guide BitForex towards even greater horizons. I will continue contributing my wisdom and strength to BitForex because this is my eternal commitment to this home.”
The sudden shift in leadership at BitForex, coupled with recent occurrences, raises significant concerns about the company’s stability.
BitForex Trading Volume Tanks
According to CoinGecko data, trading volume decreased significantly from $2.5 billion to $1 billion between February 22 and February 24 before stabilizing. However, upon closer examination of normalized data, it appears that the exchange may have overstated its volumes by as much as 100 times. Normalized data incorporates web traffic statistics when assessing trading volume, which was reported at only $25 million on February 22.
ZachXBT pointed out that the exchange retains substantial holdings of TRB and OMI tokens, heightening the urgency of the situation. ZachXBT has pinpointed specific wallets associated with this activity, emphasizing the need for ongoing monitoring to track any additional developments.
The exchange holds a notable portion of TRB and OMI token supplies, specifically 18% of TRB and 7% of OMI. There has been minimal on-chain activity observed for the exchange’s native BF token, with only around $2,000 being transacted within the last 11 days.
