A Dive into the Events Leading to Hotbit’s Closure
Hotbit Shuts Down! Is it time to panic Or stay calm? The closure of cryptocurrency exchange Hotbit has sent shockwaves throughout the crypto community. A series of events, from Investigations to the FTX collapse and cyber attacks, has caused Hotbit to suspend its operations from the 22nd May 2023. According to a statement posted on its Twitter page and website
It’s time to take a bow 🙇
For 5 years and 4 months, the Hotbit team has been proud to participate in a wonderful crypto show with 5 million users. However, it is with great regret that we have made the decision to stop all CEX operations from May 22, UTC 04:00. We kindly ask all…— Hotbit News (@Hotbit_news) May 22, 2023
What Happened to Hotbit?
Since 2018, Hotbit has built a reputation for being a reliable platform for trading, staking, and mining a variety of crypto assets and value-added methods. In addition to trading over 1290 coins and 2100 tradable pairs daily, it had cemented its position as a formidable Centralized exchange. Its low fees attracted more than 5 million loyal users.
However, recent setbacks have raised questions about Hotbit’s platform security and the safety of users’ funds.
Has Hotbit Ever Been Hacked?
Hotbit has been a target of a number of cyber-attacks, in which malicious users have exploited the defects of projects.
In August 2022 Hotbit management team was forced to suspend operations for several weeks due to an investigation involving a former Hotbit employee who got involved in a project “that violated Hotbit`s internal principals” they said. This resulted in several high-ranking managers being subpoenaed by law enforcement. According to the firm, this has resulted in substantial losses for its business, noting that the firm’s “operation model of supporting diverse assets was becoming unsustainable.”
Furthermore, the recent market crash that resulted in the collapse of several centralized crypto entities, such as FTX, Celsius, BlockFi, etc. led to the increased scrutiny of the crypto industry by Financial regulators throughout the world.
The security of these exchanges remains a significant concern for regulators and investors alike this has led to the permanent suspension of operations of some of them in major regions. and harsh operational conditions for those that persisted.
Is Hotbit Still Active?
Starting from the 22nd May 2023, Hotbit shut down its operations. This decision was partly influenced by a criminal investigation last year, which caused the exchange to suspend operations for several weeks beginning in August 2022 and negatively impacted its operating conditions.
How long is Hotbit down for?
Hotbit has not specified how long the shutdown will take. However, the exchange clarified their decision in a blog post stating that they believe centralized exchanges (CEX) are becoming too complex and interconnected, making compliance and decentralization difficult, and are unlikely to align with long-term trends.
Hotbit shuts down due to the risks involved, and says it is not practical to continue operating while handling a variety of assets.
How Do I Get My Money Out of Hotbit?
After hotbit shuts down, users of the platform have until June 22, 2023, to withdraw their crypto assets and funds. To withdraw your assets from your Hotbit account, first log in and then click on “Fund-Withdrawals” located in the top-right corner. From there, select the type(s) of asset(s) you wish to withdraw. The process should be straightforward from there.
While Hotbit Shut down may be its setback and for its users, it is important to remember that the crypto industry is still in its infancy. As the industry continues to mature, we can expect to see more robust security measures and increased investor protection.
