The recent events surrounding Hong Kong-based crypto exchange BitForex have left users in a state of confusion and concern. The suspension of the website and trading application on Feb 23 has led to a complete blackout, with users unable to access their funds or receive any official communication from the exchange. This comes as a shock considering BitForex’s significant trading volume of over $2 billion as of Feb 24, but upon further investigation, it appears that the exchange may have inflated its volumes by up to 100 times.
Data from CoinGecko reveals a significant drop in trading volume from $2.5 billion to $1 billion between Feb 22 and Feb 24 before completely flatlining. Additionally, normalized data that takes into account web traffic statistics raises doubts about the accuracy of BitForex’s reported volumes. The exchange’s holdings of TRB and OMI tokens, comprising 18% and 7% respectively, further raise red flags regarding the transparency and reliability of the platform.
The sudden departure of CEO Jason Luo in January, followed by the recent events, has cast a shadow of doubt on BitForex’s credibility. Despite the CEO’s reassurances of a smooth transition to a new leadership team, the lack of communication from the exchange and the absence of on-chain activity for BitForex’s native BF token indicate a potential collapse of the platform’s operations.
The Cryptocurrency Community’s Response
As users seek answers and attempt to voice their concerns via platforms like Telegram, the silence from BitForex’s official channels only fuels speculation and uncertainty. The fact that one of the admins on Telegram has deleted their account and others have been inactive since Feb 21 adds to the sense of apprehension among the exchange’s 23,413 members.
The overall lack of communication and transparency from BitForex across various platforms, including the website, X account, and Telegram, paints a grim picture for users with funds trapped on the exchange. The absence of official statements or updates, coupled with the suspicious circumstances surrounding recent events, indicates a dark reality facing BitForex users.
The downfall of BitForex serves as a stark reminder of the risks associated with trading on cryptocurrency exchanges. The lack of regulation and oversight in the industry can leave users vulnerable to fraudulent practices and potential losses. It is essential for traders to exercise caution and due diligence when choosing a platform to trade digital assets, as the consequences of entrusting funds to unreliable exchanges can be dire.