BitForex, a cryptocurrency exchange based in Hong Kong, recently suspended withdrawal services without any official explanation, leaving users in the dark. This comes after it was revealed just a day before the freeze that millions of dollars in cryptocurrency had been transferred from crypto exchange wallets.

The unexpected stop was first reported by blockchain researcher ZachXBT, who noted that approximately $56.5 million in digital assets had been transferred from three BitForex hot wallets.

Following the freeze, users took to the official BitForex Telegram to report issues ranging from the inability to log into their accounts to missing assets in their accounts. At the time of writing, the site is unavailable.

Amid growing concerns, BitForex's communication channels have gone silent and there have been no updates on their social media accounts since February 21st. Against this backdrop, some members of the crypto community have speculated whether this is an exit scam; however, there are insufficient details to make such a statement.

BitForex also ran into trouble in April 2023 when it came under scrutiny from Japan's Financial Services Agency (FSA) for allegedly violating national fund settlement laws by operating without the required registration. After this incident, BitForex remained out of the sight of regulators.

The incident adds to a growing list of concerns among cryptocurrency exchange users, highlighting the importance of transparency and compliance in the sector.

In other news related to cryptocurrency exchanges, bankrupt FTX received court approval to sell its shares in Anthropic, potentially adding more than $1 billion to its cash reserves, which will be used to pay out customers.