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News

Hotbit Announced The Suspension Of Operations From 4:00 Today

May 22, 2023 - Around 3 mins mins to read

Key Points:

  • Hotbit announced that the platform would stop all CEX operations at 4:00 UTC on May 22.
  • The exchange stated that the above decision was based on the deterioration of operating conditions and changes in the trend of the encryption industry.
  • In August last year, Hotbit announced that since the end of July, several senior managers of the company had been summoned by law enforcement agencies and announced the suspension of deposit and withdrawal functions.
Hotbit, a crypto exchange, said that it would cease all CEX activities on May 22, 04:00 UTC and that all users must withdraw any remaining assets by June 21, 04:00 UTC.
Hotbit Announced The Suspension Of Operations From 4:00 Today

Hotbit indicated that the decision was made due to the worsening of operational circumstances, changes in the crypto industry’s trend, and the revelation that the operating model supporting varied assets is unsustainable.

Earlier, in August of last year, Hotbit published a notification stating that numerous top Hotbit executives had been summoned by law enforcement authorities since the end of July and that deposit and withdrawal services had been suspended, affecting more than 2 million users and being down for maintenance for more than a week.

The reason for this is that in April 2022, former Hotbit executives took part in a project that law enforcement authorities now think violated criminal legislation. Since the end of July, many top corporate officials have been subpoenaed by law authorities and are cooperating with the investigation. Moreover, law enforcement organizations blocked a portion of Hotbit’s money, leading the exchange to cease operations.

After that, the sector endured a succession of crises, including the demise of FTX, bank crises resulting in USDC off-peg occurrences, resulting in persistent withdrawals of money from the exchanges’ customers, including Hotbit, and a reduction in cash flow.

The recurring failures of huge centralized institutions have forced the sector to choose between embracing regulation and becoming more decentralized. The Hotbit team believes that centralized exchanges (CEX) are becoming more difficult to manage, with extremely complicated and interrelated companies to comply with, whether for or against decentralization and are unlikely to match long-term trends.

According to the announcement, the exchange has also endured multiple challenges, including as frequent cyber assaults and the exploitation of project vulnerabilities by malevolent users, resulting in large losses owing to the threat’s ambiguity. As a result, from a risk management aspect, the exchange variety that the operating model of supporting a variety of assets is unsustainable.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Join us to keep track of news: https://linktr.ee/coincu

Harold

Coincu News

CEX

crypto

FTX

Hotbit

USDC

Author

Harold

With a passion for untangling the complexities of the financial world, I've spent over four years in financial journalism, covering everything from traditional equities to the cutting edge of venture capital. "The financial markets are a fascinating puzzle," I often say, "and I love helping people make sense of them." That's what drives me to bring clear and insightful financial journalism to the readers of Coincu.
News

Hotbit Announced The Suspension Of Operations From 4:00 Today

Key Points:

  • Hotbit announced that the platform would stop all CEX operations at 4:00 UTC on May 22.
  • The exchange stated that the above decision was based on the deterioration of operating conditions and changes in the trend of the encryption industry.
  • In August last year, Hotbit announced that since the end of July, several senior managers of the company had been summoned by law enforcement agencies and announced the suspension of deposit and withdrawal functions.
Hotbit, a crypto exchange, said that it would cease all CEX activities on May 22, 04:00 UTC and that all users must withdraw any remaining assets by June 21, 04:00 UTC.
Hotbit Announced The Suspension Of Operations From 4:00 Today

Hotbit indicated that the decision was made due to the worsening of operational circumstances, changes in the crypto industry’s trend, and the revelation that the operating model supporting varied assets is unsustainable.

Earlier, in August of last year, Hotbit published a notification stating that numerous top Hotbit executives had been summoned by law enforcement authorities since the end of July and that deposit and withdrawal services had been suspended, affecting more than 2 million users and being down for maintenance for more than a week.

The reason for this is that in April 2022, former Hotbit executives took part in a project that law enforcement authorities now think violated criminal legislation. Since the end of July, many top corporate officials have been subpoenaed by law authorities and are cooperating with the investigation. Moreover, law enforcement organizations blocked a portion of Hotbit’s money, leading the exchange to cease operations.

After that, the sector endured a succession of crises, including the demise of FTX, bank crises resulting in USDC off-peg occurrences, resulting in persistent withdrawals of money from the exchanges’ customers, including Hotbit, and a reduction in cash flow.

The recurring failures of huge centralized institutions have forced the sector to choose between embracing regulation and becoming more decentralized. The Hotbit team believes that centralized exchanges (CEX) are becoming more difficult to manage, with extremely complicated and interrelated companies to comply with, whether for or against decentralization and are unlikely to match long-term trends.

According to the announcement, the exchange has also endured multiple challenges, including as frequent cyber assaults and the exploitation of project vulnerabilities by malevolent users, resulting in large losses owing to the threat’s ambiguity. As a result, from a risk management aspect, the exchange variety that the operating model of supporting a variety of assets is unsustainable.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Join us to keep track of news: https://linktr.ee/coincu

Harold

Coincu News