Cryptocurrency exchange BitForex suffered a sudden outage this week after nearly $56.5 million in cryptocurrency assets were withdrawn from the company's wallets.
The platform did not provide any explanation, while users on social media reported account closures.
- BitForex hot wallets saw an exit of $57 million on February 23, according to the investigator.
- The company is not responding, as users complain of their inability to withdraw funds.
- The site is now offline with a “Blocked” message appearing amid the outage.
According to an on-chain analyst ZackXBTBlockchain data indicates that significant funds were withdrawn from BitForex less than 24 hours before the suspension began. Neither the company nor its recently departed CEO addressed the strange timing or current situation.
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It raises concerns about the current situation of BitForex
With the exchange's website suddenly inaccessible and most user inquiries unanswered, concern is growing as to whether BitForex has fallen victim to an internal or external hack.
At the very least, the absolute lack of transparency around prolonged outages risks permanent reputational damage.
Many users took to social media and asked about their inaccessible accounts. The debacle also raises concerns about asset security given BitForex's large cryptocurrency reserves under management as one of the prominent trading venues in the market.
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The company reportedly owns 18% of TRB's supply and 7% of OMI's supply, which could face the risk of liquidation if solvency issues arise.
For now, there is only speculation, without any response from the stock exchange team. However, the sudden suspension of the service and lack of response has sparked fear and uncertainty among its users.
