A cryptocurrency exchange, BitForex, has announced it will resume user withdrawals after a five-month halt. The exchange had ceased operations due to a police probe in Jiangsu Province, China, and a major $57M outflow on February 23.
In a recent update on X (formerly Twitter), BitForex says it will open withdrawals but trading and deposits remain suspended. To withdraw funds, the users have to go through the KYC procedures and provide identification documents. During this period, the platform will not accept registration or any deposit of funds.
It has also announced that the exchange intends to cease all trading activities and undertake a major reform exercise. This step is used to bring back the assets to the users and at the same time check for security measures.
If you are one of the users who have had a perpetual contract, you will have to go through identification again with a passport and phone number for withdrawal. This means that users should transfer their funds to personal or third-party wallets.
The closure and investigation started after BitForex lost huge amounts of funds through a mass withdrawal of funds that led to the intervention of the Jiangsu Province police. The Hong Kong Securities and Futures Commission also advised users of the platform through warnings.
According to various reports, it was noted that BitForex’s hot wallet which was inactive up to June was activated with $43 million worth of TRB tokens. The following activity has led to some concerns regarding its compliance status and future activities.
BitForex has issued an apology to its users and assured them that all possible measures have been taken to protect their funds from further loss.
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