BitForex Resumes User Withdrawals After Five-Month Suspension Following Police Raid

BitForex, a digital currency exchange, will recommence user withdrawal services following a five-month suspension. The Jiangsu Province police in China seized the BitForex crew on February 23rd as part of an ongoing investigation.

BitForex said on X (formerly known as Twitter) that it will allow the withdrawal of funds, although trading and deposits will remain restricted. Users must complete the Know Your Customer (KYC) requirements to access the funds and verify their identity. The exchange ceased operations on February 23 following a $57 million outflow and a police raid in Jiangsu Province, China.

As per the announcement from the exchange:

“On February 23, 2024, the BitForex team was detained and investigated by the Jiangsu Province police in China. This event led to the suspension of the platform and the inability of users to withdraw their assets on that day.”

The exchange has declared its intention to cease all activities and undergo a thorough correction process, during which it will restore assets to its users.

BitForex provided the exchange with a comprehensive account of the reopening process and the specific procedures that would be implemented. All trading activities on the platform will be suspended to prevent transactions involving the purchase or sale of assets.

Currently, new user registration will be temporarily halted, and existing users will not be allowed to deposit money into their platform wallets. The platform will suspend its services and products to implement this corrective action.

The withdrawal will be directly transferred to the user's wallet or any other third-party wallet that the user selects. Customers who own perpetual contracts need to provide their KYC documents, which include a passport and phone number, to initiate a withdrawal.

BitForex reassured its users that it had implemented all essential precautions to safeguard user assets and expressed regret for the difficulty and grief caused by the occurrence.

The Jiangsu Province police initiated an inquiry into the BitForex team following a significant cash withdrawal from the exchange. On February 23, there was a considerable outflow of $57 million from the exchange, which compelled the authorities to take action.

The platform's closure has prompted worries from various regulatory bodies, including the Hong Kong Securities and Futures Commission (SFC), which issued warnings to platform users.

According to a report by Coingape in June, it was revealed that the hot wallet of BitForex had been reactivated and was holding $43 million worth of TRB tokens. This development occurred during a period of low activity on the exchange since February 21 and has generated discussions on its adherence to regulations and future strategies.

On-chain analysts, like SomaXBT, have observed that the hot wallet has become active once more, which could impact cryptocurrency withdrawals and other market activities.