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Crypto Exchange Hotbit Suspends All Transactions amid Investigation into Criminal Project

UTC by Darya Rudz · 3 min read
Crypto Exchange Hotbit Suspends All Transactions amid Investigation into Criminal Project
Photo: Unsplash

Hotbit is now providing all the necessary information to law enforcement, collaborating with the authorities to complete the investigation and get back to regular operations as fast as possible.

Hotbit, the cryptocurrency trading platform that lists the world’s greatest number of cryptocurrency projects, has announced suspending all its operations amid the ongoing investigation into a suspicious project that involved its former employee. According to the company, it is unclear when it will resume the transactions.

Investigation into Hotbit

Currently, such services as trading, deposit, withdrawal and funding are unavailable.

As Hotbit has explained, one of its former management employees who left the company in April this year was participating in a project last year that allegedly violated the law. Notably, this involvement did not comply with Hotbit’s internal principles, as the company was unaware of his external activity. Hotbit is now providing all the necessary information to law enforcement, collaborating with the authorities to complete the investigation and get back to regular operations as fast as possible.

Hotbit has assured that its customers’ funds are safe and their data is secure and correct. Soon after announcing freezing assets, Hotbit released another statement describing the treatment of users’ assets on the platform. Firstly, Hotbit will cancel an unfilled open order in order to prevent loss due to market fluctuations. Secondly, the exchange will liquidate all customers’ leveraged ETF positions. Further, Hotbit will distribute the income of investment products as usual. In addition, the company will later come up with a compensation plan.

Hotbit is not the only platform to suspend operations. Earlier, companies like Celsius, Voyager, and Hodlnaut all have done the same. They faced a severe liquidity crisis during the brutal bear market and failure of payment from Three Arrows Capital. After halting trading, deposits, and withdrawals, all three companies filed for Chapter 11 bankruptcy.

About Hotbit

Founded in 2018, Hotbit is based in Shanghai and Taipei. Hotbit claims to be one of the largest and fastest-growing crypto exchanges that have listed over 2,000 trading pairs in total. According to CoinMarketCap, it is the top exchange in terms of digital assets listed. Hotbit has over 7 million registered users from more than 210 countries. This year, the company has been focused on its global expansion strategy.

As we reported earlier, Hotbit decided to strengthen its positions in the world’s emerging markets such as Russia, Turkey, and southeastern Asia and was ranked one of the top 3 most welcomed exchanges by Russian media in 2019. In Turkey, Hotbit has been cooperating with the blockchain communities of the country’s well-known universities, including Gazi University, Selçuk University, and Sabancı University.

In the past 24 hours, Hotbit processed $25.6 million worth of digital asset transactions.

Blockchain News, Business News, Cryptocurrency news, News
Darya Rudz
Author Darya Rudz

Darya is a crypto enthusiast who strongly believes in the future of blockchain. Being a hospitality professional, she is interested in finding the ways blockchain can change different industries and bring our life to a different level.

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