ZachXBT researcher suspects BitForex exchange in scam

The platform froze clients’ funds and does not respond on social networks

26.02.2024 - 13:58

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2 min

What’s new? An anonymous blockchain researcher under the nickname ZachXBT has noted suspicious activity on the BitForex exchange. Thus, on February 23, $56,5 million was withdrawn from BitForex hot wallets, and soon after that, the platform stopped processing withdrawals. Since then, the company’s representatives have not commented on the situation in any way.

Source: Twitter.com

What else is known? Initially, the administrator of the BitForex Telegram channel stated that large transfers were carried out as part of wallet maintenance, but after that, he stopped publishing and changed his username. At the moment, users are unsuccessfully trying to get a response from BitForex on social networks.

It is noteworthy that on January 31, the CEO of the exchange Jason Luo announced his resignation from his post. “A new leadership team is poised to take the reins, and I believe they will guide BitForex towards even greater horizons <…> I have boundless confidence in BitForex's future,” Luo said in a statement.

ZachXBT noted that BitForex holds 18% of the Tellor Tributes (TRB) token offering and 7% of the ECOMI (OMI) token offering. The latter’s price fell by 8,3% overnight, according to data from the CoinGecko aggregator.

In the discussion under the investigator’s post, users noted the risks of using centralized exchanges (CEXs) that control users’ access to assets, citing a common rule in the crypto environment, “not your keys, not your coin,” referring to the need for self-storage of cryptocurrencies and wallet keys.

Late last year, Canadian crypto exchange Catalyx froze trading, depositing, and withdrawals after losing some customer assets due to a “security breach,” an employee may have been involved in the incident. Earlier, the securities regulator of the province of Alberta began investigating the activities of the exchange.

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