On February 23, 2024, ZachXBT reported an outflow of approximately $56.5 million from BitForex’s hot wallets. The platform subsequently suspended withdrawal services, and its CEO had resigned a month earlier, leaving the platform with ineffective leadership and lack of updates. On March 4, the Hong Kong Securities and Futures Commission issued a warning stating that BitForex was not licensed in Hong Kong to operate as a virtual asset trading platform. The platform had failed to apply for necessary licenses, leading to withdrawal difficulties for users, and its website had become completely offline.
Beosin Security Team Analysis:
- ETH Chain: On February 24, 2024, BitForex transferred multiple tokens to an ETH chain wallet address. Most of these tokens, except TRB, were transferred back on August 9. On November 9–10, TRB was moved in several transactions to four OKX user addresses and two Binance user addresses.
- BSC Chain: On February 24, BitForex withdrew tokens to a BSC chain address, which remains dormant as of now.
- Polygon Chain: On February 24, BitForex withdrew tokens to a Polygon (POL) chain address. Some MATIC tokens were transferred back on August 9, while the remaining USDT and USDC tokens remain dormant.
- TRON Chain: On February 24, BitForex withdrew tokens to a TRON chain address. All tokens were transferred back on August 9.
- BTC Chain: Starting February 24, multiple BitForex addresses transferred a total of 5.7 BTC to BTC chain addresses. All funds were returned on August 9.
The security and regulatory compliance of virtual asset trading platforms are crucial. As users, we must remain vigilant, regularly check the platform’s security status and official announcements, and take precautions to avoid unnecessary financial losses when encountering similar issues. At the same time, the industry should strengthen security audits and regulatory oversight of platforms to protect investors’ legal rights and interests.
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