Cryptocurrency exchange BitForex announced it will reopen for withdrawals after a five-month suspension due to an investigation by the Jiangsu Province police in China. The exchange has been offline since February 23, 2024, when it experienced a $57 million outflow. This incident led to the detention and investigation of the BitForex team, making the platform inaccessible and preventing user withdrawals.
Limited Reopening for Withdrawals
In a recent post on X, BitForex confirmed that while trading and deposits will remain suspended, withdrawals will be available for clients who complete the know-your-customer (KYC) verification process. This step aims to allow users to reclaim their assets before the exchange ceases all operations.
The unexpected police investigation on February 23 caused significant disruptions for BitForex users. The exchange’s sudden closure prompted warnings from Hong Kong’s Securities and Futures Commission (SFC), emphasizing the risks of trading on platforms facing legal challenges.
Also Read: BitForex Suspends Withdrawals Amidst Concerns
Impact of the Outage
The five-month outage severely affected BitForex’s user base, leaving them unable to access their funds. The exchange’s announcement to facilitate withdrawals is a crucial step in addressing user concerns and ensuring the return of their assets. BitForex stated, “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 become inaccessible, and users were unable to withdraw assets on that day.”
After completing the withdrawal process for its users, BitForex plans to cease all operations and undergo a “comprehensive rectification.” This indicates a major shift for the exchange, which will no longer operate in its current capacity. The future of BitForex remains uncertain as it addresses regulatory and operational challenges following the investigation.
By prioritizing the return of user assets and complying with regulatory requirements, BitForex aims to resolve the issues that led to its prolonged outage and restore confidence among its clients.
