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Cryptocurrency exchange Hotbit has announced that it will cease operations from May 22. The exchange asked its users to withdraw funds before June 21 at 4:00am UTC.
In an announcement, the exchange said its operations have deteriorated since August 2022 following an investigation by a former member of its team. According to the exchange, the investigation forced it to shut down its business for weeks.
Furthermore, Hotbit also cited various events within the crypto space as contributors to its decline. The exchange cited the collapse of FTX and the banking crisis that led to the dwindling occurrence of USD Coin (USDC) as reasons for its deteriorating cash flow. Hotbit said the incidents resulted in a steady outflow of funds from centralized exchanges.
The Hotbit team also believes that centralized exchanges are becoming “increasingly cumbersome” and “unlikely to deliver long-term trends.” The exchange said the only option is to become more decentralized or embrace regulation.
The exchange also attributed repeated cyberattacks and exploitation of “project flaws by malicious users” as reasons for its downfall.
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As soon as the announcement was made, many members of the community informed of that they were unable to withdraw their money from the exchange.
How can we withdraw when the Withdrawal option is disabled? Please enable withdrawal so that we can withdraw our assets https://t.co/gXlGpR4hOV
— Laith (@laith2762) May 22, 2023
Some even warned community members about phishing links pretend The official Hotbit exchange on Google.
While Hotbit is taking its bow, other exchanges are underway, with some launching campaigns to fix issues in the crypto industry. Crypto exchange Coinbase recently published a campaign to “update the system”. OKEx took it a step further; It wants to completely “rewrite the system”.
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