Wash trading, one of the most damaging practices in the cryptocurrency industry has been very difficult to deal with since cryptocurrency exchanges began popping up. Exchanges which engage in wash trading use fake volumes and bots to deceive both unsuspecting companies and traders for their own benefit. In a previous article, Bitforex was found to be one of the greatest culprits of this wash trading practice with their fake daily trading volume on the exchange.
In that article, we mentioned the lack of factual information available on the exchange website so that traders could verify the location of the legal entity behind Bitforex as well as the owners of the exchange and the team behind Bitforex.
We are glad to our report that our investigation team has successfully found more information about this exchange.
Registration Information
According to the data we were able to find, The Bitforex exchange is registered in Hong Kong with the following details:
Company Name: BITFOREX CO., LIMITED
Company Proposed Address: Room.2309,23/F, Ho King Comm Ctr,
2–16 Fa Yuen Street, Mongkok,
Kowloon
Hong Kong
Company Founder Name: LUO, XINYAO
Company founder address: Room.2–13A, Fulian Building,
Address: Lianhuabei, №1116,Lianhua Road,
Futian District, Shenzhen City, Guangdong Province,
China.
Company founder submitted ID number: 44142519800108003X
Issuing country: China
Company Secretary (Body Corporate): QD Business Services Limited
Company Reg number: 2574637
Company address: Units.2802A, Wu Chung House,
№213 Queen’s Road East,
Wanchai
Hong Kong
These details can be verified here: https://drive.google.com/open?id=1r8q5f48WHEsKVqnEsc1wKO2BQc1Btr5d
The Bitforex location mentioned in our previous article was a temporary office where the information had not been updated. However, Bitforex has seemingly also moved to a new holding company:
FORTUNE TECH DEVELOPMENT PTE. LTD.(n.k.a)
BITFOREX CHAIN PTE. LTD.(f.k.a)
SINGAPORE CLOUDSEA CAPITAL PTE. LTD.(f.k.a)
1769 GEYLANG BAHRU
02–05
SINGAPORE(339703)
Owners
According to the registration files, the founder of Bitforex seems to be a Chinese businessman known as Luo Xinyao. However, there is no clear information available which confirms his identity or background. Team transparency is one of the biggest problems in the cryptocurrency industry and was a major issue during the ICO rush of 2017. The fact that exchanges are continuing to do this is a problem which the wider crypto community must deal with immediately.
Conclusion
This latest evidence shows the Bitforex exchange displays a lack of transparency as they do not readily provide information on their legal entities or the team behind the exchange. Blockchain projects and crypto traders alike should exercise extreme caution when dealing with exchanges such as this and avoid them wherever possible.