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Hotbit Crypto Exchange Shutdown, Suspends Trading, Freezes Customers Funds.

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Last updated on October 14th, 2022 at 10:39 am

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In a statement released on it’s website on Thursday, Hotbit Crypto exchange announced suspension of trading, deposit, withdrawal and funding functions, noting that the exact time of reopening of its platforms cannot be determined at the moment.

The reason is “that a former Hotbit management employee who left Hotbit in April this year was involved in a project last year(which was against Hotbit’s internal principles and of which Hotbit was unknown) that law enforcement authorities now think is suspected of violating criminal laws. So, a number of Hotbit senior managers have been subpoenaed by law enforcement since the end of July and are assisting in the investigation. Furthermore, law enforcement has frozen some funds of Hotbit, which has prevented Hotbit from running normally.”

The firm also states that the remaining employees were not involved in the project and had no knowledge of the alleged illegal activities. Regarding frozen assets, Hotbit says:“All users’ assets are safe on Hotbit. Hotbit will resume normal service as soon as the frozen funds are resolved. We also continue to cooperate with law enforcement regarding frozen assets and are in constant contact with them through our lawyers. We are doing our best to release the funds.”

Also Read: Bitconnect Crypto Exchange Founder Charged For $2.5 Billion Crypto Ponzi Scheme.

Due to the freezing of trading at Hotbit, headquartered in Hong Kong, all unrealized transactions will be canceled and all leveraged fund positions on the exchange will be liquidated. Meanwhile, Hotbit also promises that revenue from users’ investment products will be distributed and a “compensation plan” will be released for users when the website reopens.

Hotbit will resume normal service as soon as the assets are unfrozen. All user’s assets and data on Hotbit are secure and correct.

About the treatment of user’s assets on Hotbit during the suspension time, please click here

If there is any update about this issue, we will inform you through our community.

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