a hot bit, a famous cryptocurrency exchange, announced the closure of its platform in response to a series of crises. The decision was made as a result of a criminal investigation launched in August last year that resulted in the freezing of user funds and the suspension of deposits, withdrawals and trading.
Hotbit, known for its wide range of cryptocurrencies, had built up a loyal user base of 5 million people in five years. However, due to recent regulatory challenges, the company has made the difficult decision to cease all operations as of this Monday (22).
This isn’t the first outage Hotbit has faced. Previously, the exchange dealt with allegations of misconduct by a former manager. While specific violations were not disclosed, Hotbit assured the public that the employee involved had left the company several months prior to the incident.
In July last year, senior executives at Hotbit were subpoenaed by an undisclosed jurisdiction and allegedly cooperated in the ongoing investigation. The exchange refrained from disclosing the identity of the authority responsible for investigating administrators’ actions.
End of Hotbit
The impact of the investigation only exacerbated the company’s financial problems. In a Monday blog post, Hotbit mentioned the fallout from the FTX collapse a few months earlier and the banking crises that crashed the USDC earlier this year.
These events contributed to an increase in withdrawals from centralized exchanges, exacerbating Hotbit’s cash flow problems.
The company suggested that running centralized exchanges could become increasingly challenging in the future as global regulations tighten.
The exchange has recognized the complex and interconnected nature of its trading activities, making it difficult to achieve compliance and decentralization, ultimately undermining long-term viability.
In addition to regulatory hurdles, Hotbit faced other more serious issues, such as frequent cyber-attacks and the exploitation of project vulnerabilities by malicious users, resulting in significant losses. The team found that supporting the trading of various cryptocurrencies was unsustainable from a risk management perspective.
Withdraw your money
Hotbit, which claims to be registered in Estonia and Hong Kong but operates in Shanghai and Taipei, has processed about $109 million worth of cryptocurrency transactions in the past 24 hours, according to CoinGecko data.
The company urged its users to withdraw their funds before June 21. The exchange said goodbye to its community and expressed gratitude and optimism for the future of cryptocurrency innovation. Even though Hotbit is closing its doors, some team members remain determined to continue championing the industry’s progress.
With the end of Hotbit’s trajectory, the wider cryptocurrency community is left to consider the implications of the stock market shutdown and the potential implications for the evolving regulatory landscape and the future of centralized exchanges.
View the company statement:

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.