Hotbit Exchange Suspends Operations And Advises Users To Withdraw Cash

May 22, 2023

Hotbit Exchange Suspends Operations And Advises Users To Withdraw Cash

According to Hotbit, centralized exchanges are growing more complex and are “unlikely to meet long-term trends.” Hotbit, a cryptocurrency exchange, stated that it would cease operations on May 22. The exchange requested that customers remove cash by June 21, at 4:00 a.m. UTC.

The exchange stated in an announcement that its operational circumstances had deteriorated following a probe into a former member of its staff in August 2022. According to the exchange, the investigation prompted it to close its doors for many weeks.

Furthermore, Hotbit highlighted many incidences in the crypto industry as contributing to its collapse.

The exchange attributed it’s declining cash flow to the FTX collapse and the financial issues that resulted in the USD Coin de-pegging incident. According to Hotbit, the incidents caused a constant outflow of cash from centralized exchanges. Furthermore, the Hotbit team feels that centralized exchanges are becoming “increasingly cumbersome” and “unlikely to meet long-term trends.”

According to the exchange, the only alternatives are to grow more decentralized or to accept regulation. The exchange also blamed persistent assaults and the exploitation of “project defects by malicious users” for its demise. Following the statement, some members of the community reported being unable to withdraw cash from the exchange.

Some members of the community have also been alerted about phishing URLs that appear to be the official Hotbit exchange on Google.  While Hotbit makes its debut, other exchanges continue to operate, with some initiating campaigns to address difficulties in the cryptocurrency business. Coinbase, a cryptocurrency exchange, has launched a drive to “update the system.” OKX aims to “rewrite the system” totally.

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