Hotbit crypto exchange halts operations, urges users to withdraw funds
Cryptocurrency exchange Hotbit announced that it is ceasing its operations completely as of May 22, according to an official announcement.
The crypto exchange asked its users to withdraw funds before June 21, at 4:00 am UTC.
Hotbit said that its operating conditions deteriorated after a former member of its team was investigated in August 2022. According to the exchange, the probe forced it to stop its business for several weeks.
Additionally, Hotbit cited various incidents within the crypto space as contributors to its decline, namely the FTX collapse and the banking crises. The exchange stated that these incidents led to a continuous outflow of funds from centralized exchanges.
The Hotbit team believes that centralized exchanges are becoming "increasingly cumbersome" and "unlikely to meet long-term trends." The exchange said the only options are to become more decentralized or embrace regulation.
Hotbit also blamed the repeated cyberattacks and the exploitation of "project defects by malicious users" as reasons for its downfall.
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