The digital asset platform Bitforex announced on July 19 that it will soon reopen withdrawals exclusively for users to retrieve their assets, while all trading functions will remain suspended and the platform will undergo a “comprehensive rectification.” This decision comes nearly five months after the platform became inaccessible following the detention of its team members by Chinese police.
The Withdrawal Freeze: Team Members Detained
In a statement posted on X (formerly Twitter), the Bitforex team disclosed that on February 23, 2024, its team members were detained and investigated by the Jiangsu Province police in China. This unexpected event caused the platform to be inaccessible, and users were unable to withdraw assets. The team cited the sensitive nature of the situation as the reason for not providing timely notifications. Previously, Bitforex had frozen withdrawals abruptly in late February, just days after digital assets worth $56.5 million were moved out of its hot wallets. Social media at the time speculated about insider involvement, but no official explanation was given.
Withdrawal Details: Wallet-Only, No Trading
According to the latest update, withdrawals will be directed to designated personal or external third-party wallets. Users holding perpetual contract positions must provide know-your-customer (KYC) documents, such as passports, to enable withdrawals. During this period, all trading functions are suspended, no new user registrations will be permitted, and the platform will cease all types of services and products to undergo comprehensive rectification. The team stated that after engaging with law enforcement, they have received approval to reopen withdrawals.
Scam Alert and Future Uncertainty
The team also issued a scam alert, warning users to be wary of impersonators posing as Bitforex support staff. Analysts note that while the withdrawal reopening is a positive step for users, the platform's long-term viability remains uncertain. The comprehensive rectification could signal a full restructuring or even closure. Users are advised to withdraw their funds promptly and remain vigilant against phishing attempts.