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The cryptocurrency exchange Bitforex has suspended withdrawals after hot wallets lost $56.5 million.
User withdrawals from centralized cryptocurrency exchange Bitforex suddenly stopped. The sudden move had happened shortly after $56.5 million was allegedly withdrawn from the platform’s hot purse. Zachxbt, an online crypto analyst, says that the Bitforex team has cut off all user connections.
Nothing Official From the Bitforex Group
Cryptocurrency exchange Bitforex abruptly stopped withdrawals on February 23. Zachxbt, an online cryptocurrency analyst, says that no formal statement has been made explaining why users are unable to access their funds in the 19th century. Zachxbt said in a post on X (formerly Twitter) that $56.5 million inexplicably disappeared from the cryptocurrency exchange's hot wallet before it suddenly stopped withdrawing funds in the 19th century.
Since then, Bitforex users have been using the cryptocurrency exchange's official social media pages to seek updates and answers. However, Zachxbt claims that the Bitforex team has stopped responding. Unconfirmed reports suggest that one of Bitforex’s social media channel administrators may have changed his username.
The retirement ban, which many on social media have described as an exit scandal, reportedly comes about a month after CEO Jason Luo resigned. Since then, BitForex users have been told that there have been several problems that have led to unexpected outages. Following an alleged lack of communication from BitForex’s social media managers, the cryptocurrency exchange’s website was unavailable on February 26th.
Zachxbt instructed his followers to identify in one X post the three wallets likely owned by Bitforex members, which caused the massive surge.
Hong Kong-based cryptocurrency exchange BitForex yesterday faced setbacks when it suddenly went offline after $57 million was mysteriously removed from its hot wallet
The situation was first confirmed by blockchain detective ZachXBT, who noted that the withdrawal transaction had been suspended and that Bitforex's team had not responded. Attempts to reach Bitforex's official website were met with a blocked message , raising concerns about the exchange’s operating conditions.
A day before BitForex stopped demonetisation, there was a demonetisation incident, where around $56 million worth of cryptocurrencies were removed from its wallet and the Bitforex hot wallet three received cryptocurrencies with a total output of about $56.5 million
Since May 2023, there have been no updates from BitForex social media accounts, and users have been reporting issues with not being able to access their accounts and a blank dashboard.
Bitforex’s lack of connectivity has users worried, with some considering the possibility of an exit. Previously, the exchange came under scrutiny in April 2023 after it was accused of violating money laundering rules by operating without proper registration with the Japanese Ministry of Finance
This article highlights the importance of transparency and compliance in the cryptocurrency industry.
withdraw money from BitForex
To withdraw money from BitForex, you can follow the exact steps described in their forum. Withdrawal fees vary depending on the cryptocurrency, there are withdrawal limits for each cryptocurrency displayed on the exchange
When you’re in business, it’s important to review billing information and adhere to withdrawal limits to avoid any problems.
In conclusion,
The BitForex demonetisation following the cryptocurrency surge has raised concerns in the crypto community. The lack of communication from the exchange has fueled speculation about its operational status and integrity, which underscores the need for transparency and compliance in the cryptocurrency sector
Top Crypto Scams In 2024
Scams using cryptocurrency are constantly evolving, tricking millions of investors. The con artists persuade investors with their clever language and convincing demeanor. It frequently functions well. After defrauding a few investors, they repeat the same operation under a new guise.
Crypto scams are similar to other scams in general, except instead of stealing your money, the scammers target your crypto assets. Their intention is to coerce investors into sending digital assets to the scammer's account or disclosing personal information.
The Reserve Bank of India's P Vasudevan, an executive director, stated that cryptocurrencies cannot be called "currencies" since they lack intrinsic value during a panel discussion hosted by IIM-Kozhikode. Bitcoins and other modern currencies have drawn criticism from the RBI, which claims they put the financial systems at danger.
India's Biggest Crypto Scams
The Scam of GainBitcoin Ponzi Scheme
In 2018, there was a Ponzi scheme scam involving GainBitcoin. Businessman Amit Bhardwaj conned around 8,000 people out of a total of INR 2,000 crore. He created a multi-level marketing fraud in which he deceived and persuaded investors to convert their Bitcoins for big rewards. He presented them with an 18-month contract that promised a yield of 10 percent.
Morris Coin Fraud
In 2022, the Morris Coin Scam came to light. It was also the most recent scam involving cryptocurrency in India. More than nine hundred investors are said to have been duped by a website advertising a phony cryptocurrency called Morris coin. The victims took part in the phony cryptocurrency's inaugural offering. A total of INR 1,200 cr was stolen.
The Bitcoin Scandal in Karnataka
The year 2021 saw the Karnataka Bitcoin scandal occur. In November 2021, the Central Crime Branch, a specialist investigative section of the Karnataka Police, seized 31 Bitcoins worth INR 9 crore from a hacker residing in Bengaluru.
STA Token
STA Token, a firm that raised INR 1,000 cr through fictitious cryptocurrency investments by tricking over 20,000 people. The State Crime Branch exposed this as a nationwide bitcoin scam. The STA token corporation was charged with participating in illicit multi-level marketing and money circulation without the Reserve Bank of India's consent. The company's two executives, Gurtej Singh Sidhu and Nirod Das, were arrested for organizing the Ponzi scam. The Economic Offences Wing (EOW) seized their accounts, which had dubious cash deposits totaling more than INR 15 cr.
Common Cryptocurrency Scams To Watch Out For In 2024
Bitcoin Investment Schemes
Under the pretense of being seasoned financial managers, the con artists approach investors with their plan. These folks claim to have accumulated millions of followers by investing in cryptocurrency and guaranteeing lucrative returns. [3]
Phishing Schemes
Phishing scams are not new, but they are still widely used. Scammers send out emails with malicious links to phony websites in an attempt to obtain personal data, including cryptocurrency wallet key data. Users are given a single, distinct private key for their digital wallets, unlike passwords. But fixing the problem presents difficulties if this key is stolen. Since each key is unique, replacing it requires making a new wallet.
Pump and Dump Programs
In a pump-and-dump strategy, con artists orchestrate purchases and aggressively promote cryptocurrencies, artificially increasing their value. They then promptly liquidate their holdings, which lowers the price and leaves gullible investors with worthless tokens.
Scams Using Rug Pulls
Investment fraudsters that use rug pull scams inflate the coin's value artificially in order to raise money for a new project or non-fungible token (NFT). They take off with the money as soon as they have it. These investments are worthless since the code prevents investors from selling their bitcoin once they have been purchased.
Phony initial coin offerings
Investors are lured in by fake initial coin offerings (ICOs) that promise lucrative profits on a supposedly revolutionary new cryptocurrency enterprise. Nevertheless, the project often turns out to be a non-entity, which causes the monies contributed to disappear.
AI Fraud
With the increasing prevalence of artificial intelligence (AI), criminals are coming up with new ways to take advantage of the cryptocurrency market. Attackers can communicate with users with AI chatbots, promoting bogus tokens and providing assistance. These chatbots are designed to enlighten investors with profitable and easy-to-invest in opportunities that often turn out to be pump-and-dump scams designed to artificially inflate token values prior to a sell-off.
How Can Cryptocurrency Scams Be Spotted?
Take good care of your cryptocurrency wallet keys: Every bitcoin wallet comes with a unique entrance key. Safeguarding the wallet's sensitive data is essential to maintaining complete control over who can access it.
Handle your wallet carefully: When working with large amounts of cryptocurrencies, be especially cautious to protect your investments. Put strong security measures in place, such as two-factor authentication; think about getting insurance against frauds; and keep a sizable amount of your assets in cold wallets.
Keep your wallet safe: As you invest in cryptocurrency, be sure you have a wallet that contains private keys. It's probably a fraud if a corporation asks for your keys in order for you to participate in an investment. Protect the keys to your wallet.
Keep a tight eye on your wallet application: To ensure the legitimacy of a cryptocurrency wallet program, start modest when transferring money. Pause the upgrade and remove the wallet app if you see any unusual activity while it's being updated.
Invest only in enterprises that make sense: If you are unsure about how a particular cryptocurrency works, stop and do extensive research before making an investment.
Proceed with caution while clicking on social media advertisements: scammers that prey on cryptocurrency often use social media to advertise their fraudulent schemes. When you come across bitcoin chances on social media, be skeptical and make sure you do your research.