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Cryptocurrency exchange Hotbit has announced a suspension of trading, deposits, withdrawals and funding on its platform. The exchange said law enforcement had frozen some of its funds and subpoenaed some senior executives as it investigated a criminal case involving a former employee of the exchange.
Cryptocurrency exchange Hotbit announced a temporary suspension of services on Wednesday. The company wrote:
We’re sorry, but Hotbit has to stop trading, depositing, withdrawing, and fundraising. The exact timing of reopening cannot be determined at this time.
The exchange detailed that the reason for the suspension was that the former managerial employee was suspected of violating criminal law.
This employee left Hotbit in April. Unknown to the exchange, he was involved in a project last year that violated the company’s internal practices.
Law enforcement agencies have summoned many Hotbit senior managers since the end of July. They are now assisting authorities in their investigation, the exchange added, detailing:
Additionally, law enforcement froze some of Hotbit’s funds, causing Hotbit to stop working properly.
According to Hotbit’s website, the exchange has over 700,000 registered users from over 210 countries. “By focusing on emerging markets around the world, such as Russia, Japan, South Korea, Turkey and markets in Southeast Asian countries, Hotbit has attracted users from his Twitter, Telegram, VK and Facebook,” he said on his website. Details are explained.
The exchange does not serve users in many countries, including the United States, China, Singapore, and Japan.
Hotbit has applied for the release of frozen assets, the exchange noted, emphasizing that “all users’ assets are safe” on the platform. Additionally, the company claims that all user assets and data on the exchange are safe and correct, detailing:
Hotbit will resume normal services as soon as the assets are unfrozen.
Hotbit has become the latest cryptocurrency exchange to stop withdrawals.German crypto exchanges on Tuesday coloring, formerly Bitwala, filed for bankruptcy.Recently, a Singapore-based crypto exchange Zipmex I stopped withdrawals and applied for a moratorium.Other Crypto Companies That Have Filed For Bankruptcy Include Crypto Lenders voyager digital When Celsius network.
What are your thoughts on Hotbit shutting down services over a former employee investigation? Let us know in the comments section below.
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