Bitforex resumes withdrawals for users after 5-month hiatus

Bitforex users can finally withdraw their funds after five months of waiting. The cryptocurrency exchange announced that withdrawals would resume following a police investigation.

The problem started on February 23, when the Jiangsu Province police detained Bitforex team members, making the platform inaccessible.

For months, users were left in the dark, unable to access their funds. In a post on X (formerly Twitter), Bitforex explained the situation to us.

They didn’t provide specific details about the investigation but said that persistent efforts and communication helped them resolve the case.

During the hiatus, Bitforex went MIA, unable to provide any updates to its users. This left many frustrated and anxious about the safety of their funds.

In their announcement, Bitforex apologized for the inconvenience and concerns they’ve caused. They added that:

“We understand that this incident has caused significant inconvenience and distress to our users, and we sincerely apologize for this. We are making every effort to ensure the safety of user assets.”

The exchange assured users that withdrawals would resume soon and provided specific details about the process. Trading functions will remain suspended, new user registrations halted, and deposits disabled.

The platform will go through a comprehensive rectification, ceasing all types of services and products temporarily. To withdraw their assets, users will need to follow specific steps outlined by Bitforex.

Users can transfer their assets to designated personal or external third-party wallets. However, those holding perpetual contract positions must complete KYC (Know Your Customer) verification.

This includes submitting necessary identification documents such as a passport and phone number.

Before the police investigation, Bitforex had been operational since 2017, claiming to serve over six million users. However, the exchange faced scrutiny over its legitimacy. Reports suggested that Bitforex was not properly licensed to operate in Hong Kong. 

The Hong Kong Securities and Futures Commission even warned investors against using the platform just days after it went dark. The sudden shutdown of Bitforex caused widespread concern among investors.

Many users said they saw messages of “unscheduled maintenance” when trying to access their accounts. Nearly $57 million was reported to be lost. CEO Jason Luo had stepped down shortly before the detention.