Yet another cryptocurrency brokerage has begun delaying customer withdrawals and in recent days has started receiving disturbing reports from investors on social media, who are sounding the alarm of potential insolvency.
Issues arise with the Bibox platform, founded in 2017, which bills itself as the world’s first cryptocurrency exchange powered by artificial intelligence.
Customer withdrawal problems started a few weeks ago and nothing indicates that a solution to the problem is being prepared.
While withdrawals are postponed, cryptocurrency exchange continues to run deposit promotions
What draws attention to Bibox’s withdrawal delays concerns its activity on social networks. The cryptocurrency broker is completely ignoring the cases of numerous customers on its platform and continues to publish promotions for those who deposit funds on its platform.
That is, while withdrawals continue with a delay, deposits are encouraged by the platform, a clear warning sign.
šMassive benefits of price-increasing tokens
šReceive your 20,000 USDT
šŖCFX, MASK, BSV, DYDX, C98, ALGO
ā° March 30, 2023 ~ April 5, 2023
Detailšhttps://t.co/QmbPwlUaMs pic.twitter.com/kyuaAliU81ā Bibox (@Bibox365) March 30, 2023
In response to Bibox’s promotions, desperate clients are asking the broker to release withdrawals of their values āābefore proceeding with the promotions. One of the customers even said this Thursday (30) that “there is no point in continuing with promotions if the customer’s money cannot be withdrawn”.
With that comes the warning for the brokerage promotions, which can cause investors a big loss by attracting new funds, but make withdrawals difficult.
With the brokerage not responding to the issues, it’s unclear whether it’s insolvency or an ongoing financial fraud. Publicly, Bibox claims to have headquarters in Singapore and Geneva (Switzerland).
Data from CoinMarketCap shows that the Bibox exchange has recorded more than $300 million worth of transactions in the past 24 hours, but the risk of a currency problem is drawing attention in the market.
It’s not the brokerage’s first problem
In 2020, a hacker cheated GoDaddy’s service and took control of cryptocurrency exchanges, one of those affected at the time was Bibox itself.
After a while, services were restored, with the brokerage’s recent problems in the past unrelated to the case.
However, it is noteworthy that a brokerage’s lack of withdrawals is a serious sign of trouble, insolvency or fraud against clients. Bibox has not yet publicly commented on the problems experienced and is not responding to concerned customers.
Source: Live Coins
Barry Siefert is an accomplished journalist and author at The Nation View. He is known for his expertise in the field of cryptocurrency, and has written extensively on the topic. With a background in finance and economics, Barry has a deep understanding of the underlying technology and market forces that drive the crypto industry.
