Service suspension by Hotbit has been declared by the company, which will encompass all platform operations because the company’s funds have all been frozen by law enforcement.
It will resume operations once assets have been unfrozen by authorities.
Service Suspension by Hotbit
In a blog post published on Wednesday, Hotbit revealed the news of the suspension (August 10, 2022). The site is pausing all operations, including deposits, trading, withdrawals, and funding, according to the cryptocurrency exchange, until further notice.
Hotbit provided an explanation for the service suspension, stating that law enforcement was looking into a former management employee who had participated in an outside project in 2021 in violation of internal company policies.
The cryptocurrency exchange and other employees weren’t aware of the scheme and weren’t involved, according to Hotbit. Authorities believe that the enterprise broke some criminal laws in the meanwhile.
Law enforcement consequently froze part of Hotbit’s assets, which had an impact on the exchange’s regular business activities. Senior firm officials who were handed subpoenas as well are cooperating with the investigation.
“Hotbit and the rest employees of Hotbit’s management are not involved in the project and have no knowledge of the illegal information involved in the project. However, we are still actively cooperating with the law enforcement authorities in their investigations and are continuously communicating with them through our lawyers and applying for the release of the frozen assets.”
Hotbit plans to restart operations once funds are unfrozen, noting that “assets of all users remain safe on Hotbit,” despite the lack of a specific timeframe for the suspension’s lifting.
Increasing Number of Crypto Exchanges Stopped Accepting Deposits and Withdrawals
The most recent event comes just after Singapore-based cryptocurrency lending site Hodlnaut likewise stopped all operations, citing the need to concentrate on stabilizing its liquidity and safeguarding assets as the reason for the decision.
Additionally, Hodlnaut will discontinue its token swap feature and withdraw its license application from the Monetary Authority of Singapore, the Singaporean regulator.
“We are actively working on the recovery plan that we hope to provide updates and details on as soon as permissible. We are consulting with Damodara Ong LLC on the feasibility and timelines of our intended execution plan and are strategizing our recovery plan with our users’ best interests in mind.”
In the meantime, Hotbit is the most recent cryptocurrency exchange to halt deposits and withdrawals. In contrast to the justification Hotbit provided for its suspension, the bear market has led to similar steps from other businesses.
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