BitForex, a cryptocurrency exchange based in Hong Kong, has suddenly halted transaction withdrawals for a minimum of three days without providing any explanation. On the day before this unexpected suspension, approximately $56 million worth of cryptocurrency was withdrawn from the exchange's wallets. Investigations conducted by on-chain analyst ZachXBT revealed a substantial outflow from three BitForex hot wallets just before the freeze on transactions.

Users of BitForex have voiced numerous complaints, including difficulties logging into their accounts and missing asset displays on the dashboard. Moreover, access to the main BitForex website appears to be restricted, although certain specific pages, such as the announcement regarding the departure of CEO Jason Luo, remain accessible.

As of September 2023, BitForex was regarded as a leading global cryptocurrency exchange in terms of capitalization. However, in April 2023, Japan's Financial Services Agency accused the company of violating financial regulations by operating without proper registration. Since then, there has been minimal public regulatory scrutiny or media coverage.

In a separate incident, the unrelated Hong Kong-based exchange Atom Asset Exchange (AAX) ceased all operations on November 13, 2022, and transferred approximately $55.6 million worth of Ether from its wallets a week earlier. Following AAX's closure, the former CEO and a board member were apprehended by Hong Kong police. Allegations suggest that the anonymous founder of AAX absconded with 230 million Hong Kong dollars ($29.41 million) of customer funds and the private keys to the exchange wallets.