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Crypto Exchange Hotbit shutdowns after 5 Years of Operation


Having operated for 5 years in the cryptocurrency market, Hotbit decides to shut down, following the steps of Bit4You and Paxful.

It seems that the Centralized Exchanges (CEXs) are facing the worst period in the history of cryptocurrency.

After the FTX crisis on November 2023, several crypto exchanges began to face intense scrutiny from the watchdogs.

Among the crypto exchanges facing the pressure of the regulators is Hotbit which announced its closure of operations, effective today May 22, 2023.

READ ALSO: South Korea Prosecutors Gear Up Against Crypto Criminals

“It’s time to take a bow” – Hotbit says, suspending all operations

Hotbit takes a bow

Today Monday, May 22, 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 include the changes in the cryptocurrency market trends.

Among the factors, are the FTX issue of November 2023 and the bank crisis that led to the Circle USDC de-pegging on April 2023.

According to Hotbit, it temporarily shut down its operations for a few weeks in August 2022 because of a former Hotbit employee who was under investigation by law enforcement. This is the last permanent shut down decision it is making.

As such, the crypto exchange instructs its users to withdraw all of their assets before June 21, UTC 04:00.

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Could CEX’s be cumbersome?

While Hotbit claims that Centralized Exchanges (CEXs) have become more cumbersome, there could be some factors to oppose the claim.

According to the crypto exchange, CEXs now have more complex and interlinked businesses which are quite tricky to meet the ever-changing trends.

Apart from market volatility, trends, and operating conditions, Hotbit experienced various setbacks as it reveals in its public announcement.

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

All these factors and many others contribute to Hotbit’s decision to close down its operation.

The crypto exchange which formerly boasts of having millions of users is now admonishing its customers to withdraw their funds before the deadline scheduled on June 21.

After this period, every other account on the platform will become invalid and inaccessible.

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