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This Crypto Exchange Signals Potential Exit Scam 

1 min
Updated by Ali M.
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In Brief

  • ZachXBT highlights potential exit scam by BitForex, noting $56.5 million outflow.
  • BitForex's silence raises alarm; formerly active CEO stepped down a month ago.
  • Exchange controls significant supply of TRB and OMI, further raising concerns.
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The crypto market is currently concerned about BitForex’s recent activities. These actions hint at the possibility of an exit scam, a scenario where platform operators suddenly disappear with their users’ funds.

The radio silence from BitForex’s team has caused uncertainty about the crypto exchange’s future.

Analyzing the Stability of This Crypto Exchange

Notably, ZachXBT, an esteemed on-chain detective, shed light on BitForex’s unsettling behavior. He reported that on February 23, the crypto exchange’s hot wallets experienced outflows nearing $56.5 million. Subsequently, withdrawals were halted, leaving users in a state of confusion and concern.

“Currently, users are asking questions on X/Telegram trying to get a response from the team. Interestingly one month ago, their CEO stepped down,” ZachXBT said.

Moreover, BitForex’s substantial control over 18% of the Tellor (TRB) supply and 7% of the Ecomi (OMI) supply amplifies the potential impact of its actions on the cryptocurrency market.

Despite the crypto exchange’s silence since its last post on February 21, 2024, BitForex’s X account remains surprisingly active. This unusual silence has not gone unnoticed, especially since social media inactivity typically follows an exit scam.

When probed about the likelihood of an exit scam, ZachXBT remained cautious, emphasizing the need for more information before drawing conclusions. His restraint reflects the broader uncertainty within the crypto community, which still reels from the 306 exit scams in 2023 that collectively drained over $152.7 million from users.

Read more: What Is a Rug Pull? A Guide to the Web3 Scam

2023 Crypto Security Incidents.
2023 Crypto Security Incidents. Source: CertiK

Exit scams are pervasive in the decentralized and loosely regulated cryptocurrency industry, often leaving investors stranded and skeptical.

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Harsh Notariya
Harsh Notariya excels in delivering SEO-optimized crypto news under tight deadlines. Previously, as a Growth Marketer at Sporty and a Community Consultant at Totality Corp, he significantly boosted community engagement and followers. Harsh also crafted engaging content for top crypto influencer Shivam Chhuneja, blending meme references for an educational yet fun experience. His versatile skills make him a notable figure in crypto journalism.
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