Crypto Exchange Hotbit Shutdown after 5 Years of Operation

After operating for 5 years, Hotbit decided to follow the steps of Bit4You and Paxful to exit the crypto market.

It seems that the CEXs (centralized crypto exchanges) are facing the worst period in the history of cryptocurrency.

After the FTX blew up last year’s November, other crypto exchanges began facing intense scrutiny from the watchdogs.

Among the crypto exchanges facing the pressure of the regulators is Hotbit which announced its closure of operations.

Hotbit Suspends Operations

Today Monday, May 22, the crypto exchange announced its decision to suspend its operations.

The crypto exchange explained through its official article why it shut down its business unexpectedly.

The company cited many different factors that caused its shutdown which includes the changes in the cryptocurrency market trends.

Among the factors, is the FTX blowup last year’s November following the bank catastrophe.

This crisis, led to the Circle USDC depegging last April.

According to Hotbit, it has formerly shut down its operations for a few weeks in August last year.

This happened because of a former Hotbit employee at the management level who is under investigation by law enforcement.

It seems that centralized crypto exchanges are increasingly becoming burdensome.

Apart from spot trading, Hotbit offers staking services which enable users to make passive income through their crypto holdings.

But then, such success gained by the company also came with its particular problems.

For instance, a former management staff was investigated for violations of criminal laws last year.

The investigation made Hotbit assets to be frozen by the authorities.

The incident had a great impact on the crypto exchange.

It forced it to suspend its activities such as funding functions, withdrawals, and deposits for several weeks.

According to Hotbit, centralized exchanges have become more cumbersome.

The CEXs now have more complex and interlinked businesses which are not likely to meet the continuing trends.

Apart from the market volatility, in trends as well as the operating conditions, Hotbit experienced various setbacks.

For example, it encountered cyber security theft, as well as the exploitation of project flaws by vicious actors.

All these factors and many more contributes to Hotbit’s decision to close down its operation.

The crypto exchange with millions of users is now encouraging its customers to withdraw their funds from the exchange.

According to Hotbit, it will keep on encouraging customers to withdraw their assets from the platform until the 21^st of June this year.

After this period, every other account on the platform will be entirely closed.