by Kevin Helms
Crypto exchange Hotbit has announced the suspension of trading, deposits, withdrawals, and funding on its platform. The exchange said law enforcement has frozen some of its funds and subpoenaed some senior managers as they investigate a criminal case involving the exchange’s former employee.
Cryptocurrency exchange Hotbit announced the suspension of its services on Wednesday. The company wrote:
We regret to inform you that Hotbit will have to suspend trading, deposit, withdrawal and funding functions. The exact time of resumption cannot be determined at the moment.
The exchange detailed that the reason for the suspension is because a former management employee is suspected of violating criminal laws.
The employee left Hotbit in April. Unbeknownst to the exchange, he was involved in a project last year that was in violation of the company’s internal practice, the announcement details.
Law enforcement has subpoenaed a number of Hotbit senior managers since the end of July. They are currently assisting the authorities in the investigation, the exchange added, elaborating:
Furthermore, law enforcement has frozen some funds of Hotbit, which has prevented Hotbit from running normally.
Hotbit’s website states that the exchange has more than 700,000 registered users from more than 210 countries. “By focusing on the world’s emerging markets such as the markets of Russia, Japan, South Korea, Turkey, and Southeast Asian countries, Hotbit has gathered its users from Twitter, Telegram, VK, and Facebook,” the website details.
The exchange does not provide services for users in a number of countries, including the U.S., China, Singapore, and Japan.
Hotbit is applying for the release of the frozen assets, the exchange noted, emphasizing that “The assets of all users are safe” on its platform. Moreover, the company claims that all users’ assets and data on the exchange “are secure and correct,” elaborating:
Hotbit will resume normal service as soon as the assets are unfrozen.
Hotbit has become the latest crypto exchange to halt withdrawals. On Tuesday, German crypto exchange Nuri, formerly Bitwala, filed for insolvency. Recently, Singapore-based crypto exchange Zipmex halted withdrawals and filed for a moratorium. Other crypto firms that have filed for bankruptcy include crypto lenders Voyager Digital and Celsius Network.
What do you think about Hotbit suspending service due to an investigation relating to a former employee? Let us know in the comments section below.
A student of Austrian Economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open-source systems, network effects and the intersection between economics and cryptography.
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