Hotbit announced that it has ceased operations as of May 22 and urged users to withdraw their funds.
The exchange said in an announcement that working conditions have deteriorated since a former member of its team was subjected to an investigation in August 2022. In addition, Hotbit stated that some events in the crypto space also played a role in their decision. The exchange cited the bankruptcy of FTX and the banking crises that led to the USD Coin depegging event as reasons for the worsening cash flow.
Hotbit Demands Users To Withdraw Their Assets
Stating that it has terminated its operations as of 07:00 on 22 May, the exchange requested users to withdraw their assets before 07:00 on 21 June.
The Hotbit team also noted that centralized exchanges are becoming increasingly cumbersome and believe they are unlikely to meet long-term trends. The exchange said the only option is to become more decentralized or adopt regulation. The exchange also cited repeated cyber attacks and exploitation of project flaws by malicious users as reasons for its bankruptcy.
Hotbit had to temporarily suspend all deposit-withdrawal and trading operations in August 2022.
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