The app hasn't been working for over two months; it's frozen and doesn't even show the wallet. If I hadn't come across bitforex_official_exchange on Telegram, I would have lost everything I worked for.
BITFOREX advertises that its support team recovers coins when you send a wrong coin to your account # via a similar network as sending RGT to a RARE account #. Both of those coins are ERC20 coins. The support team asks for a recovery and a gas fee. Once you pay the fees, they initially tell you that the process takes one month, then postpone the deposit date and never deposit your coins. Therefore, you would lose both your coins and the fee. I share a summary of my experience and question the legality of their operations in the US.
I contacted BITFOREX support service for the first time on March 14,2022 to request recovery of my coins. I was asked and paid the service fee. I was told that my coins will be deposited to the RGT (Erc20) address that I provided in previous conversations. I understand that I deposited a wrong coin on the same network but the service team told me that they can recover my coins with a service fee. Today is the 24th of May, 2022, I waited more than a month, attempted to contact them several times, and they became silent.The reason for writing this response is to document the events before taking a legal action.
I completed the preparation of my case during the time to report ill-conducted business/ service activities of Bitforex to IRS, SEC, AAA, BBB, FDIC on purpose of the request from those institutions to start investigations and eventually aiming to stop BITFOREX operations in the US.
There are many handicaps that BITFOREX has on Federal and State level regulations to run an exchange in the US:
-US regulations for the trade exchanges require KYC (Identity) verification for the IRS to track trade activities that BITFOREX does not offer to their customers.
-US CFTC would not license cryptocurrency exchanges that offer derivatives trading to retail investors and BITFOREX run derivative trades in the US.
-The exchanges need to hand over information on U.S. taxpayers with crypto transactions that total more than $20,000 and BITFOREX does not keep records and does not provide transactions for tax purposes.
-The existing regulations of the Trade Commission, require crypto exchanges to register as money service businesses and have money transfer licenses. To obtain those licenses is costly and lengthy and if an exchange is not compatible with US regulations, it is not possible to get a license to run a service in the US. BITFOREX does not carry an MT4/5 license and is not licensed in the US.
-According to chain analysis, BITFOREX sent fake information about its trade volume to attract more people with falsified information.(https://www.coindesk.com/markets/2019/11/15/chainalysis-says-bitforex-trading-volumes-could-be-fake/)
Gokhan B. Ozdener UID*******