The post BitForex Exchange is Back After 5 months: Not as You Would Think! appeared first on Coinpedia Fintech News
After a mysterious five month shutdown, BitForex, a well known cryptocurrency exchange, is finally resuming user withdrawals. The platform had been inoperative since February 23 when Jiangsu Province police in China detained its team amidst a large-scale investigation. Users can now access their funds again, though trading and deposits remain suspended. To withdraw funds, users need to complete KYC procedures and verify their identities.
What’s Changing on the Platform?
BitForex has outlined the changes users should expect. Withdrawals are back, but trading operations are on hold to prevent new transactions. In their tweet, the exchange detailed what happened and what’s coming next.
They have suspended new user sign ups and deposit activities. Services and products provided by BitForex will be paused for a comprehensive rectification process. Withdrawals will be directed to personal or third-party wallets chosen by users. Those with perpetual contracts need to submit KYC documents, including a passport and phone number, to complete the process.
Background and Ongoing Scrutiny
The investigation began after BitForex experienced a significant outflow of $57 million on February 23. This led to the intervention by authorities. During the shutdown, many users were left frustrated and anxious, with no updates from the platform. The Hong Kong Securities and Futures Commission (SFC) had previously warned about BitForex’s lack of proper licensing. BitForex’s CEO, Jason Luo, stepped down before the detention, further amplifying concerns. Since its opening in 2017, Bitforex has served over six million active users. In a long twitter post from their official handle, they provided all the information to what’s next.
After this tweet was published, a lot of scammer twitter accounts started posting, representing themselves as representatives of bitForex. The official account warned users to stay alert and beware of such messages. The users will only be able to withdraw their funds using the official website.