- BitForex vanished with deposits earlier this year.
- It's one of several Hong Kong exchanges under scrutiny by authorities.
- BitForex says high volume is slowing down withdrawals.
On Wednesday, users of the vanished cryptocurrency exchange BitForex breathed a sigh of relief when it announced it would reopen for withdrawals later that day.
Bizarrely, two days later, users say they still cannot withdraw their money.
BitForex’s social media had come back to life on July 19 after no activity since it disappeared with about $57 million in user funds back in February.
Detention of staff
In posts on its Telegram channels and X, the exchange attributed its absence to a Chinese police investigation that had resulted in the detention of staff members in Jiangsu Province.
BitForex said it would reopen for withdrawals “soon,” so that users could get their money out, though trading, depositing and the creation of new accounts would remain unavailable.
The website came back to life. People could log in. It seemed the company was making good on its promise.
In a Telegram group for BitForex users with more than 900 members, no one has reported a successful withdrawal.
Instead, they are encountering delays with Know Your Customer verification requirements (though some reported they had been approved), issues with two-factor authentication and receiving confirmation texts, as well as a lack of response from customer support.
25% barrier
Those who attempt to withdraw are greeted with a screen that appears to track the transaction processing by percentage though it’s not entirely clear how this is being measured.
To the best of DL News’ knowledge, no withdrawal has progressed beyond 25%.
In a message published on Friday night Hong Kong time, BitForex said it was struggling to process the high volume of withdrawal requests and needed additional time to verify account details and other necessary verification.
‘Unscheduled maintenance’
Among those trying to get money out, the lack of communication has stoked fears as to whether the inability to withdraw is the result of tech issues, the high number of requests that may have to be manually approved, or whether someone else has gained control of the platform and its social media channels.
BitForex did not respond to DL News’ request for an explanation.
In February, BitForex initially claimed its disappearance was due to “unscheduled maintenance,” a reason at odds with later claims of a police investigation.
The company has not specified who was detained in Jiangsu, their roles, what they were doing in Jiangsu, or the number of staff involved.
Updated on July 26 to report BitForex’s post that it struggling to process withdrawals.
Got a crypto story? Contact DL News’ Asia Correspondent at callan@dlnews.com.
