BitForex to Resume User Withdrawals After $57M Outflow and Police Investigation in China

• BitForex is set to reopen user withdrawals following a prolonged closure triggered by a police investigation in China.
• Users will be required to complete Know Your Customer (KYC) processes to access their funds; meanwhile, trading and new registrations remain paused.
• In February, a $57 million outflow prompted local authorities to detain the BitForex team, leading to the platform’s shutdown.

BitForex is resuming withdrawals after a five-month suspension, but trading activities remain halted, compelling users to meet KYC requirements to access their funds.

BitForex Receives Green Light to Resume Withdrawals

BitForex, a cryptocurrency exchange, has announced the resumption of user withdrawals following a five-month hiatus. This development comes in the wake of an investigation by Jiangsu Province authorities in China, which led to the detention of the BitForex team and a suspension of platform operations.

KYC Verification Mandatory for Withdrawals

As part of the reopening measures, BitForex has stipulated that users must complete the Know Your Customer (KYC) verification process to withdraw their funds. This process involves verifying identities with personal information such as passports and phone numbers. While withdrawals are being reopened, trading and new user registrations will remain suspended to ensure comprehensive security and compliance.

Details of the February Atrocity

The platform’s shutdown on February 23 was prompted by a massive $57 million outflow that caught the attention of Jiangsu Province police. Following this financial anomaly, local authorities detained the BitForex team and initiated an extensive investigation. The affected exchange has remained inactive since then, causing significant inconvenience and financial distress to its user base.

Operational Measures and Future Outlook

BitForex has communicated that it will enact several operational changes to prevent similar incidents in the future. All trading activities will be suspended, and users will not be allowed to add funds to their platform wallets during the rectification period. The exchange has assured users that their assets are secure and has apologized for the disruptions caused by the prolonged shutdown.

Regulatory Scrutiny and Compliance

The exchange faced not only the local police investigation but also heightened regulatory scrutiny from bodies such as the Hong Kong Securities and Futures Commission (SFC). The SFC issued warnings to potential users about the platform’s ongoing issues. These regulatory pressures highlight the need for stringent compliance measures within the cryptocurrency exchange industry.

Conclusion

As BitForex begins to reopen its withdrawal services, users must navigate through KYC verification to regain their assets. While trading and new registrations are still on hold, the exchange is taking steps to rectify its operations and improve security and compliance measures. This development serves as a critical reminder of the importance of regulatory vigilance and operational transparency in the volatile world of cryptocurrency exchanges.