In a recent announcement, the Hotbit exchange said its operating conditions have deteriorated since a former member of the company's team was investigated in August 2022. According to the exchange, the investigation forced them out of business for weeks.
Additionally, Hotbit also cited various incidents in the crypto space as contributing to the current crisis. The exchange said the collapse of the FTX exchange and the banking crises that precipitated the collapse of USD Coin (USDC), were the reasons for its cash flow deterioration. Hotbit also said that consecutive pipeline failures have contributed to the continued outflow of funds from centralized exchanges.
In addition to the above, the Hotbit team also believes that centralized exchanges are becoming “increasingly cumbersome” and “incapable of responding to long-term trends.” The exchange also mentioned that the only options for resolution are to become more decentralized or to comply with legal regulations.
The exchange also blamed repeated cyber attacks and the exploitation of “project bugs by malicious users” for its downfall.
When the announcement was made, some community members reported being unable to withdraw funds from the exchange.
Crypto exchange Hotbit has announced that it will cease all its operations starting May 22. The exchange has asked all users to withdraw their funds by June 21, 04:00 UTC.
Some people also warned community members about fake links pretending to be the official Hotbit exchange on Google.
While Hotbit officially suspended its operations, other exchanges are still continuing and launching operations to fix the problems in this space. Crypto exchange Coinbase recently launched a campaign with the content “update the system”. On the other hand, OKX went a step further and wanted to completely "rewrite the system".
