Crypto exchange Hotbit shuts down

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  • Hotbit has announced that it will be halting its operations as from 22 May 2023.
  • The exchange cites the deterioration in operating conditions and the change in the cryptocurrency exchange trends among reasons for the decision.
  • The exchange has asked its users to withdraw their funds before June 21, at 4:00 am UTC.

Hotbit, a cryptocurrency exchange that has been in operation for over 5 years, has announced that it will be shutting down all operations.

A notice to customers from the exchange’s team on Monday noted that operations would be halted as from 22 May 2023, at UTC 04:00. Users have been asked to withdraw their remaining assets before June 21, 2023 at UTC 04:00.

Why did Hotbit shut down?

The decision to halt activities is down to multiple factors, including the deterioration of operating conditions and the change in the cryptocurrency exchange trends.

After the Hotbit management team was forced to suspend operations for several weeks due to the investigation in August 2022 the industry has experienced a series of crises, including the collapse of FTX, bank crises causing USDC off-peg incidents, resulting in continuous outflows of funds from CEX users, including Hotbit, and deteriorating cash flow,” the announcement read.

However, Hotbit also suffered from a number of problems, including repeated cyber-attacks and the exploitation of project vulnerabilities by malicious actors.

Hotbit was founded in 2017 and quickly became one of the most popular cryptocurrency exchanges in the world.

The exchange’s shutdown comes at a time when the crypto industry is still navigating the negative impact of major collapses.

It’s also within an environment where regulators have increasingly tightened their crackdown on the industry. The past few months have seen major players like Coinbase, Ripple and Binance take the lead in asking for greater clarity in regulation from US regulators.

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