BitForex, a cryptocurrency exchange, has announced the reopening of its platform for asset withdrawals after a tumultuous period marked by the detention of its team in Jiangsu Province, China. This incident, which occurred on February 23, 2024, led to an unexpected halt in platform operations and withdrawals. On that day, approximately $56.5 million was reported to have been withdrawn from BitForex’s hot wallet, prompting the immediate suspension of withdrawal services.
The exchange communicated the situation through an official announcement, expressing regret over the inconvenience and uncertainty faced by its users. The unexpected nature of the detention prevented BitForex from issuing timely notifications, leaving many users in the dark about the status of their assets.
Efforts to resolve the situation have been ongoing, and BitForex has now received clearance to reopen specifically for withdrawals. The exchange will undergo significant operational changes during this period. Trading functions will be suspended, halting all buy and sell activities.
Additionally, new user registrations will be temporarily paused, and deposits into platform accounts will be unavailable. BitForex has emphasized that this phase is crucial for comprehensive rectification, aiming to restore trust and security for its user base.
BitForex Withdrawal Process and KYC
Users will be permitted to withdraw their assets to designated wallets, but those holding perpetual contract positions will need to complete Know Your Customer (KYC) verification. This process requires users to submit identification documents such as a passport and phone number, ensuring compliance with regulatory standards.
BitForex has acknowledged the distress caused by the incident and is prioritizing the safety of user assets. The exchange’s customer service team is available for inquiries and support, with users encouraged to reach out via the official email channel for assistance.
The reopening of withdrawals marks a significant step toward stabilizing BitForex’s operations and rebuilding user confidence. The exchange has extended apologies and gratitude to its community, emphasizing a commitment to transparency and security in the future.
However, it brings to light all the complexities and risks that the industry of cryptocurrency holds, especially for the regions which have strict regulatory environments. Another change the exchange looks to bring in further will be complete restoration of services while maintaining user trust through improved security features and clarity in communication.
Related Reading | Binance.US Receives Approval to Invest Customer Assets in U.S. Treasury Bills