BitForex, a cryptocurrency exchange based in Hong Kong, faced scrutiny when its website went down after an alarming withdrawal of $57 million from its hot wallets on February 23.

The event first came to public attention through ZachXBT, a Decentralised Finance (DeFi) detective on X (formerly Twitter), triggering widespread concern.

This incident added to the troubles of BitForex, already under the shadow of a wash trading scandal, further shaking the confidence of its users and stakeholders.

The sudden shutdown of BitForex’s website following the substantial withdrawal episode has raised questions about security and transparency within cryptocurrency exchanges.