According to CoinGecko data, between February 22 and 24, BitForex’s trading volume dropped significantly from $2.5 billion to $1 billion before stabilizing. On the other hand, a review of normalized data suggests that volumes may have been 100 times overstated.
Following a $57 million withdrawal from its hot wallets last week on February 23, the website of the Hong Kong crypto exchange BitForex went silent, suggesting some dubious and suspicious activities.
The BitForex platform has reportedly stopped processing withdrawals, according to blockchain investigator ZachXBT. Additionally, consumers have noticed that the BitForex personnel are not responding to their concerns.
On top of that, when people try to access the BitForex website, they see this page that says: “We apologize, but we have blocked you.”
Since May 2023, the X account on the exchange has been dormant. Consequently, BitForex customers are addressing a range of account-related difficulties on the official Telegram channel. Problems with account access and dashboards showing no assets are two examples. A few users have also reported seeing a notice that says they are unable to access the business website.
Lately, BitForex has been experiencing some difficulties. Jason Luo, CEO of BitForex, departed from the firm last month. But as he was leaving, Luo said:
“I am confident that the forthcoming leadership team will steer BitForex towards even more ambitious goals. This is my everlasting dedication to BitForex, and I will keep lending my knowledge and power here.”
There are major reasons to be concerned about BitForex’s stability, including the recent events and the sudden shift in leadership.
Statistics compiled by CoinGecko show that trade volume dropped sharply from $2.5 billion to $1 billion between February 22 and 24 before leveling out. The exchange may have exaggerated its volumes by a factor of 100 or more, according to a closer look at normalized data. The stated trade volume on February 22 was barely $25 million, but normalized data takes site traffic figures into account when making assessments.
The fact that the exchange has large quantities of TRB and OMI tokens on hand, as pointed out by ZachXBT, makes the issue much more critical. ZachXBT has identified certain wallets linked to this behavior, highlighting the need to continue to watch for any further developments.
Approximately 18% of TRB and 7% of OMI are held by the exchange, making it a significant stakeholder. Only around $2,000 worth of the exchange’s native BF token has changed hands in the last eleven days, indicating very little on-chain activity.
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