Crypto exchange Hotbit has announced the suspension of trading, deposits, withdrawals and funding on its platform. The exchange said law enforcement had frozen some of its funds and called on some senior managers to investigate a criminal case involving a former employee of the exchange.
Hotbit suspends trading, deposits, withdrawals
Cryptocurrency exchange Hotbit on Wednesday announced the suspension of its services. The company wrote:
We regret to inform you that Hotbit must suspend trading, deposit, withdrawal and funding operations. The exact time of restoration cannot be determined at this time.
The exchange elaborated that the reason for the suspension was a former management employee suspected of violating criminal laws.
The employee left Hotbit in April. Unbeknownst to the exchange, he was involved in a project last year that was a violation of the company’s internal practice, the announcement details.
Law enforcement has summoned several Hotbit senior managers since late July. They are currently assisting the authorities in the investigation, the exchange elaborated:
In addition, law enforcement has frozen some of Hotbit’s funds, which has prevented Hotbit from operating normally.
Hotbit’s website states that the exchange has over 700,000 registered users from over 210 countries. According to the website’s description, “By focusing on emerging world markets such as the markets of Russia, Japan, South Korea, Turkey and Southeast Asian countries, Hotbit has gathered its users from Twitter, Telegram, VK and Facebook.”
The exchange does not provide services for users in several countries including the US, China, Singapore and Japan.
The exchange noted that Hotbit is applying for the release of frozen assets, emphasizing that “assets of all users are safe” on its platform. Furthermore, the company claims that the assets and data of all users on the exchange are “secure and accurate,” elaborating:
As soon as the assets freeze, Hotbit will resume normal service.
Hotbit has become the latest crypto exchange to stop withdrawals. On Tuesday, German crypto exchange Nouri, formerly Bitwala, filed for bankruptcy. Recently, Singapore-based crypto exchange Zipmex halted withdrawals and filed for a moratorium. Other crypto firms that have filed for bankruptcy include crypto lender Voyager Digital and Celsius Network.
What do you think of the Hotbit service being suspended due to an investigation involving a former employee? Let us know in the comments section below.
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