What is Happening WIth Bitforex? Is it the next FTX?

Cryptocurrency exchange BitForex's website appears to be blocked for access, amid the exchange’s suspension of withdrawals without explanation for three days. 

On-chain researcher ZachXBT recently shed light on concerning developments surrounding the cryptocurrency exchange BitForex. 

According to ZachXBT's findings, BitForex's hot wallet experienced a staggering outflow of approximately $56.4 million on February 23. Shortly after this significant movement of funds, withdrawals from the exchange abruptly halted.

As of the time of his post, withdrawals had not resumed, leaving users puzzled and concerned about the platform's stability.

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BitForex's Silence Raises Concerns

There hasn't been an update to the exchange's X account since Feb 21. In the aftermath of these events, BitForex users have flooded X and the exchange's Telegram channel with inquiries. 

However, BitForex's team has remained notably silent, failing to address the mounting questions and concerns of its user base.

Adding to the unease is the recent departure of BitForex's CEO, Jason Luo, from his role on Jan. 31, leaving stakeholders uncertain about the platform's leadership and direction.

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A Troubled History

BitForex has a history of regulatory scrutiny and allegations of impropriety. The exchange has faced accusations of faking trading volume, as highlighted in a 2019 Chainalysis report. 

Moreover, Japanese regulators have flagged BitForex for operating without a license, culminating in accusations of violating the country's fund settlement laws in April 2023. As of September 2023, BitForex was ranked among the top crypto exchanges by capitalization with daily trading volume standing at about $2.6 billion in crypto. 

Due to the lack of an active website, X platform, and suspension of withdrawals, BitForex appears to be heading for a similar collapse as FTX. However, we can only confirm once we have more informatio.