The decision from Hotbit to cease operations prompts urgent withdrawal of Shiba Inu (SHIB) tokens, leaving users concerned about asset safety.
Hotbit, a prominent crypto exchange with a solid base in the Asia-Pacific (APAC), has directed Shiba Inu (SHIB) holders and other investors to withdraw their tokens from the platform. This comes on the back of the exchange’s decision to shut down after over 5 years of operation.
Hotbit disclosed this in a recent tweet, emphasizing its resolve to cease all centralized exchange (CEX) operations. The exchange has given SHIB holders and other investors a deadline of June 21, 04:00 (UTC) for the withdrawal of their assets.
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
Hotbit’s management team highlighted the industry’s recent crises, including the collapse of FTX, the second-largest crypto exchange at its peak, and bank crises leading to depeg incidents with USDC. The exchange claimed these events resulted in substantial fund outflows from its platform and significantly affected its cash flow.
In addition, the team stressed that the operational complexities of centralized exchanges are becoming increasingly burdensome, making it difficult to comply with regulations or adapt to the growing decentralization trend. As a result, Hotbit concluded that its exchange model was unlikely to meet the long-term industry trends.
Shiba Inu Community Sympathizes with Hotbit
Lucie, a prominent Shiba Inu development team member, has sympathized with users facing potential financial losses on the HotBit exchange. In a comment regarding HotBit’s recent announcement to cease CEX operations, Lucie reiterated her previous warnings and urged affected users to take immediate action to protect their funds.
Notably, in December, the influencer warned the community against purchasing BONE, the governance token for ShibaSwap, on Hotbit. The crypto influencer alleged that the exchange listed BONE under a strange ticker and an erroneous network. Describing it as deceptive behavior, Lucie noted that investors who mistakenly purchased the copycat tokens were not able to withdraw them.
Moreover, as disclosed by The Crypto Basic, last August, Hotbit shut down all operations indefinitely, including deposits, withdrawals and trading. At the time, the exchange was facing issues with the authorities as a result of the alleged involvement of a former management employee in a fraudulent project.
