Hotbit, a cryptocurrency exchange, has made an announcement stating that it will halt its operations starting from May 22. The exchange has urged its users to withdraw their funds by June 21 at 4:00 am UTC. According to Hotbit, the decision to suspend its activities is due to the worsening operating conditions, which can be traced back to an investigation involving a former team member in August 2022. This investigation forced the exchange to cease its business for several weeks.
Furthermore, Hotbit has pointed out several incidents in the cryptocurrency space that have contributed to its decline. The exchange specifically mentioned the collapse of FTX and the banking crises that led to the depegging of USD Coin, both of which resulted in a significant decrease in cash flow. Hotbit stated that these events caused a continuous outflow of funds from centralized exchanges.
The Hotbit team also expressed their belief that centralized exchanges are becoming more burdensome and are unlikely to align with long-term trends. They emphasized that the options available are either to transition towards greater decentralization or to embrace regulation. Additionally, the exchange attributed its downfall to repeated cyberattacks and the exploitation of project vulnerabilities by malicious users.
Following the announcement, several community members reported difficulties in withdrawing their funds from Hotbit.
Furthermore, there were warnings circulating within the community regarding phishing links that falsely claimed to be the official Hotbit exchange on Google.