Hotbit, a cryptocurrency exchange, abruptly declared that all trading, deposits, and withdrawals would be suspended while an investigation was conducted.
The Hotbit cryptocurrency exchange abruptly declared that it would cease all trading, depositing, and withdrawing activities with an unspecified resume period in a notification released on the evening of August 10.
The explanation offered by HB is that a former exchange manager, who departed the company in April 2022, was associated with a project that is under investigation for possible illegal activity. The authorities then called a number of the exchange’s senior management in July, and they are now helping with the probe. Operations have been hampered by the authorities’ freezing of some of the exchange’s assets.
Hotbit terminates services amid legal trouble
In addition to refusing to identify the precise person or organization that was looking into the trade, Hotbit denied being aware of the former manager’s illicit acts in advance.
The exchange guarantees that user funds will be protected during this time and promises to restart trading as soon as the assets are frozen.
It is unclear whether the decision to cease operations by Hotbit was made for a specific reason or as a result of the Three Arrows Capital – Celsius crisis, which led several other exchanges to declare insolvency due to financial losses.
Hotbit is an exchange that, according to CoinMarketCap, has a 24-hour trading volume of up to 350 million USD, albeit the veracity of this figure has not been confirmed.
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