Hotbit has ceased trading, deposits, and withdrawals as authorities froze some of the crypto exchange’s funds over a suspected violation of criminal law. This follows allegations that a former manager who left Hotbit in April was involved in activities that went against the platform’s internal principles.
Some of Hotbit’s senior managers were subpoenaed late last month and are cooperating with the investigations. The platform didn’t say which jurisdictional agency is investigating its managers, or the total value of the frozen funds. An official blog post by Hotbit said its management are not involved in the project and has no knowledge of the illegal information involved in the project. Its actively cooperating with the law enforcement authorities in their investigations and communicating with them through the lawyers, and applying for the release of the frozen assets. Hotbit assured users that the assets are safe on the platform.
The firm isn’t sure when its services will resume. Incomplete open orders on Hotbit will be invalidated before services resume. This will prevent possible losses, and all leveraged ETF positions will be liquidated. Established in 2018, Hotbit has more than one million users from 170 countries. It suspended services in 2021 for a week following a cyberattack that took down many of its services.