The team behind the meme coin CatCoin (CAT) has issued an official warning to the Hong Kong-based exchange BitForex regarding difficulties in withdrawing the coin.
This is a formal warning to @bitforexcom Exchange regarding the withdrawal of $CAT tokens. We may pursue legal action against both Bitforex and its former CEO, @JasonLuoBF, who remains in charge of the exchange. Despite repeated attempts to contact both parties, there has been…
— CatCoin (@catcoin) May 24, 2024
Project representatives have threatened to sue the trading platform and its former CEO, Jason Luo, should their complaint be ignored.
“Despite repeated attempts to contact both parties, there has been no response. In this notice, we remind the exchange that refusal to communicate […] will compel us to take legal action,” the publication states.
The CatCoin team has also reached out to the Hong Kong police for assistance in resolving the issue.
On February 23, on-chain researcher ZachXBT noted an outflow of approximately $56.5 million from BitForex’s hot wallets. About a month before the incident, Luo stepped down as CEO.
Following the asset withdrawal, the exchange’s website went offline, and the last post on its official X account was dated February 21. Many community members speculated about a possible scam.
In March, Hong Kong police representatives told DL News that they are conducting an “investigation” into BitForex. However, the whereabouts of the company’s former CEO remain unknown.
“People saw their deposits and funds stolen online. All this time, the team kept saying, ‘Don’t worry, it’s just maintenance, BitForex will be back soon.’ But they never returned. Four hours later, they locked the doors and completely disappeared,” one of the exchange’s clients said in an interview.
The exact amount of damage and other details of the case have not been disclosed by the police for confidentiality reasons.
In April, the Dutch Fiscal Information and Investigation Service arrested a suspect in connection with the ZKasino blockchain casino scam.
Prior to this, the platform’s team sent 10,515 ETH worth $33.9 million to the Lido staking protocol and changed the wording on their website, removing the statement about returning assets.