Blockchain sleuth ZachXBT has raised concerns within the crypto community regarding suspicious activities on the BitForex crypto exchange. In a post dated Feb. 26, ZachXBT highlighted alarming behavior, suggesting the possibility of an exit scam by the platform. According to the investigation, BitForex reportedly withdrew around $56.5 million worth of cryptocurrency from its hot wallets on Feb. 23. Following this significant withdrawal, the exchange abruptly halted all withdrawals without providing an official explanation for the action, as reported by ZachXBT.
The situation is compounded by recent changes in BitForex’s leadership, with CEO Jason Luo stepping down in January. While Luo expressed confidence in the capabilities of the new leadership team in a blog announcement, questions surrounding his departure have added to the speculation surrounding the exchange’s activities.
Of particular concern is BitForex’s retention of substantial holdings of TRB and OMI tokens, as identified by ZachXBT. The investigator has pinpointed specific wallets associated with these transactions, prompting calls for continued vigilance and monitoring of the situation for further developments.
BitForex, established in 2018, has faced criticism in the past, including user complaints regarding account bans allegedly related to Know Your Customer (KYC) requirements. Despite these issues, the exchange has yet to issue any public statements addressing the recent events at the time of this report.
