Hotbit Exchange Stops Operations, Advises Users to Withdraw Funds

Hotbit stated that centralized exchanges are becoming more complicated and emphasized that they are unlikely to align with long-term trends.

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Hotbit, a cryptocurrency exchange, announced that it will stop its operations starting from May 22. The exchange has requested its users to withdraw their funds before June 21, at 4:00 am UTC.

In a statement, the exchange explained that its operating conditions worsened after one of its team members underwent an investigation in August 2022. The investigation caused the exchange to suspend its business operations for several weeks.

Hotbit also mentioned several incidents in the cryptocurrency space that contributed to its decline. They referred to the collapse of FTX and the banking crises, which caused the USD Coin (USDC) to depeg from its value of $1.00. According to Hotbit, these events led to a continuous outflow of funds from centralized exchanges, negatively affecting their cash flow.

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The Hotbit team also thinks that centralized exchanges are becoming more complicated and are unlikely to align with long-term trends. The exchange stated that the only choices are to become more decentralized or embrace regulation.

The exchange also attributed its decline to repeated cyberattacks and the exploitation of vulnerabilities in projects by malicious users.

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After the announcement was made, some community members reported that they couldn’t withdraw their funds from the exchange.

https://twitter.com/laith2762/status/1660537977469038594?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1660537977469038594%7Ctwgr%5E169c20965b8ce8b50d56017866d4971f3241349e%7Ctwcon%5Es1_&ref_url=https%3A%2F%2Fcointelegraph.com%2Fnews%2Fhotbit-exchange-halts-operations-urges-users-to-withdraw-funds

Some community members cautioned others about phishing links on Google that imitate the official Hotbit exchange.

While Hotbit is shutting down, other exchanges are continuing their operations. Some of them have initiated campaigns to address the issues in the cryptocurrency industry. Coinbase recently launched a campaign to “update the system,” while OKX is taking a more ambitious approach by aiming to “rewrite the system” completely.

Important: This article is intended solely for informational purposes. It should not be considered or relied upon as legal, tax, investment, financial, or any other form of advice.

Author

  • SHBAZ

    A crypto enthusiast, Loves to write, Loves to explore and stay up-to-date about the latest developments in the crypto world. #Btc #Crypto #NFT

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