Cryptocurrency exchange BitForex suffered a sudden outage this week after about $56.5 million worth of crypto assets were withdrawn from the company's wallet.
Users on social media have reported account lockouts, although the platform has not provided any explanation.
- According to researchers, $57 million was leaked in the BitForex hot wallet on February 23rd.
- Users have complained about not being able to withdraw funds, but the company has not responded.
- The site is currently down and offline with a “Blocked” message.
According to on-chain analysts Zack XBT, blockchain data shows that large amounts of funds were being withdrawn from BitForex in the 24 hours before the outage began. Neither the company nor its recently departed CEO mentioned the interesting timing or current situation.
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Concerns grow over the current situation of BitForex
Concerns are growing that BitForex has fallen victim to an internal or external hack, after the exchange's website suddenly became inaccessible and most user inquiries went unanswered.
At the very least, an absolute lack of transparency regarding prolonged service interruptions risks permanent reputational damage.
Various users access social media and ask about accounts they cannot access. This debacle has also raised concerns about asset security, given the huge crypto reserves that BitForex manages as one of the market's prominent trading venues.
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The company reportedly holds 18% of TRB supply and 7% of OMI supply and could face liquidation if solvency issues emerge.
For now, there is only speculation and no response from the exchange team. However, the sudden service outage and unresponsiveness caused fear and anxiety among users.
