Cryptocurrency exchange Bitforex has announced the reopening of withdrawals, ending a five-month period of inaccessibility following a police investigation by the Jiangsu Province authorities in China. The Hong Kong-based exchange disclosed that the police detained and investigated its team members on February 23, 2024, causing the platform to become inaccessible and halting all withdrawals.
Official Announcement and Apology
On July 19, Bitforex broke its silence on X, stating that the prolonged police investigation had disrupted its operations and prevented timely communication with users. The company expressed regret for the inconvenience and concerns caused during this period, emphasizing that the sensitive nature of the situation restricted their ability to provide updates.
User Withdrawals and Regulatory Scrutiny
On the day of the detainment, users withdrew approximately $56 million from the exchange before it ceased responding. The sudden halt in operations and lack of communication led to increasing user frustration and concerns about the platform’s legitimacy. In March, Hong Kong’s securities regulator labeled Bitforex as a “suspicious” crypto platform, further exacerbating the situation. Additionally, projects like the memecoin CatCoin threatened legal action against Bitforex due to the communication breakdown.
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
Former CEO’s Statement
Former Bitforex CEO Jason Luo, who resigned in January just weeks before the incident, posted the same message about the police investigation on his X account, aligning with the company’s official statement.
Moving Forward
Despite resolving the situation after persistent efforts and communication, Bitforex has not yet clarified details of any potential criminal investigation. Users will soon be able to withdraw their assets, though buying or selling tokens on the platform remains unavailable for now. Bitforex’s reopening marks a significant step toward regaining user trust and operational stability in the highly volatile cryptocurrency market.
