Hotbit crypto exchange that was founded in 2017 has announced that it will be shutting down its primary platform. The exchange cited a series of crises, including a criminal investigation, as the reason for its closure.
The criminal investigation into Hotbit began in August 2022. Authorities froze the exchange’s operational funds, which led to Hotbit suspending deposits, withdrawals, and live trading. The investigation is ongoing, and Hotbit has not disclosed any further details.
In addition to the criminal investigation, Hotbit also cited other crises as reasons for its closure. These included the collapse of FTX, a major cryptocurrency exchange, and the brief depegging of USDC, a stablecoin. Hotbit also said that it had faced frequent cyber attacks and the exploitation of project vulnerabilities by malicious users.
As a result of these crises, Hotbit said that it was no longer sustainable to operate as a centralized exchange. The exchange said that it believes that centralized exchanges are becoming increasingly cumbersome and difficult to comply with regulations. Hotbit also said that it believes that the future of cryptocurrency lies in decentralization.
Hotbit users will have until June 21 to withdraw their assets from the exchange. After that date, Hotbit will no longer be able to process withdrawals.