Popular Bitcoin Exchange Suspends Operations: Investigation!

Popular Bitcoin exchange Hotbit has stopped trading, deposits and withdrawals until further notice.

Incident reaches out to an executive who left the company in April

All transactions will remain suspended until further notice, according to the exchange. Hotbit reports that the exchange has to make tough decisions following an ongoing criminal investigation it is currently facing. Hotbit officials say funds will be frozen over the course of the investigation. Frozen funds make it difficult for Hotbit to continue its day-to-day operations. The exchange tweeted today that “user’s funds are safe, please don’t worry”.

What happened?

Problems for change began last year after a former Hotbit management employee was involved in a fraudulent project deemed by authorities to be a violation of felony laws. Based on this unfortunate development, law enforcement has sued several Hotbit senior employees since last month. “Hotbit and the rest of the Hotbit management staff are not involved in the project and are not aware of the illegal information contained in the project,” the exchange said.