Highlights:
- BitForex will allow user withdrawals after a five-month suspension post-police investigation, requiring KYC verification.
- Trading and deposits remain suspended, and no new registrations are allowed during this period.
- The exchange will cease operations and undergo comprehensive rectification after returning assets to users.
BitForex, a cryptocurrency exchange, is set to resume user withdrawals after a five-month hiatus due to a police investigation in China. The exchange, which has been offline since February 23, 2024, faced significant scrutiny following a $57 million outflow that led to the detention of its team by the Jiangsu Province police.
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Withdrawal Process and Conditions
BitForex announced on its official X account that while trading and deposits will remain suspended, withdrawals will be allowed. Users must complete Know Your Customer (KYC) verification to access their funds. This move is aimed at ensuring security and compliance during the withdrawal process.
Dear Bitforex Users,
We sincerely apologize for the inconvenience and concerns you have experienced during this period. On February 23, 2024, the Bitforex team was detained and investigated by the Jiangsu Province police in China. This unexpected event caused the platform to…
— BitForex (@bitforexcom) July 19, 2024
The exchange highlighted the events leading to the halt, stating, “On February 23, 2024, the Jiangsu Province police in China detained and investigated the BitForex team. This event led to the platform’s suspension and users’ inability to withdraw their assets on that day.”
In addition to suspending trading and deposits, BitForex will also halt new user registrations. All platform services and products will cease, and the company will undergo a comprehensive rectification process. The exchange advises users to withdraw their assets to designated personal or third-party wallets as soon as possible.
The exchange emphasized the importance of completing the KYC process, which includes providing documentation such as a passport and phone number. This measure aims to prevent fraud and ensure that only legitimate users can access their funds.
Regulatory Compliance and Future Steps
BitForex’s decision to suspend operations for a thorough rectification follows the regulatory requirements imposed by the Chinese authorities. The exchange aims to address any compliance issues and ensure the safety of user assets before reopening full operations.
The announcement on X stated:
We understand that this incident has caused significant inconvenience and distress to our users, and we sincerely apologize for this. We are making every effort to ensure the safety of user assets.
BitForex has also issued a scam alert, warning users about impostors claiming to assist with withdrawals. The exchange emphasized that the only way to withdraw assets is through the official BitForex website once it reopens.
### SCAM ALERT
We have recently noticed an increase in scammers claiming they can help users withdraw their assets from BitForex.
**DO NOT BELIEVE THEM**
The only way to withdraw your assets is through the official BitForex website when it reopens.
If you have any questions,…
— BitForex (@bitforexcom) July 19, 2024
With the regulatory approval to resume withdrawals, BitForex is taking significant steps to rectify the situation and ensure compliance with Chinese authorities. The exchange’s focus on user security and regulatory compliance highlights its commitment to addressing the issues that led to the closure. Moreover, it is rebuilding trust with its user base.
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