In a X post dated February 26, blockchain investigator ZachXBT raised alarms regarding suspicious activities on the BitForex cryptocurrency exchange, suggesting a potential exit scam. The investigator reported that around $56.5 million worth of cryptocurrency was withdrawn from BitForex’s hot wallets on February 23. Subsequently, the exchange halted withdrawals without providing an official explanation.
In January, BitForex witnessed a leadership transition as CEO Jason Luo resigned from his position. Although Luo expressed trust in the capabilities of the new leadership team in a blog post, his departure under these circumstances has sparked speculation in light of recent developments.
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.
Jason Luo
ZachXBT highlighted that the exchange retains substantial holdings of TRB and OMI tokens, intensifying the gravity of the situation. Identifying particular wallets associated with this activity, ZachXBT emphasized the importance of ongoing vigilance for any subsequent developments.
Founded in 2018, BitForex has faced a barrage of user grievances, particularly related to account suspensions allegedly tied to KYC protocols. At present, the exchange has refrained from issuing any official statements regarding the unfolding events.
