Summary
TLDR: BitForex, a cryptocurrency exchange in Hong Kong, abruptly ceases operations, leaving customers unable to access funds. Significant outflows of $56.5 million detected before closure. Withdrawals suspended, leading to user complaints and suspicions of exit scam. Exchange allegedly deleting messages addressing user concerns. OMI token price crashes. Exchange previously flagged for operating without registration. Users seek collective action against BitForex. Possible exit scam similar to QuadrigaCX.
Key Points
1. BitForex, a cryptocurrency exchange based in Hong Kong, has suddenly ceased operations, triggering concerns about potential exit scams and leaving customers unable to access their funds.
2. Prior to shutting down, BitForex’s hot wallets experienced significant outflows of around $56.5 million on February 23, leading to a complete halt in trading activity on the exchange.
3. The suspension of withdrawals has led to a wave of complaints from users on BitForex’s official Telegram channel, with reports of inaccessible accounts, zeroed-out balances, and selective deletion of messages addressing user concerns.