Customers Have 30 Days to Withdraw Funds After Hotbit Exchange Suspends Operations
Centralized cryptocurrency exchange CEX, situated in Hong Kong, has more than five million users. Hotbit declared that "it is time to take a bow." The platform is ceasing operations and is providing its users one month to withdraw the remaining monies they have on it.
The exchange's team detailed what was going on in a tweet that was sent three hours ago, outlining the factors that led them to make the difficult decision to quit the cryptocurrency market. Overall, the exchange is leaving the market after a little more than five years of operation.
At 4:00 UTC today, May 22, operations will end.
Users have until June 21 (one month from now), according to the tweet, to withdraw their money from Hotbit. Three main reasons were given by the platform's crew for ceasing operations.
The first is a general deterioration in operating conditions. In August of last year, the probe forced the team to stop working on Hotbit. Back then, a former Hotbit employee started their own project and was suspected of breaking the law.
Several top Hotbit managers were summoned as a result of the probe, and some of the exchange's funds were put on hold.
Following that, the cryptocurrency industry had a number of crises, including the demise of the crypto trading juggernaut FTX after its trading subsidiary, Alameda Research, filed for bankruptcy, as well as Binance's legal troubles and USDC de-pegging. All of it resulted in a significant loss of customers for centralized crypto exchanges like Hotbit.
Multiple issues plague Hotbit.
The second justification offered by the management team was "change in the industry trend." The tweet emphasized the choice facing the cryptocurrency industry following the FTX crash: adopt regulatory guidelines or become more decentralized.
The Hotbit team believes that centralized exchanges are getting increasingly "cumbersome" since they are made up of a "highly complex of interconnected businesses that are difficult to comply with." The implication is that CEXes won't be able to keep up with long-term trends that the crypto sector may adopt in the future, according to the Hotbit exchange.
The team congratulated all of its consumers and reiterated their belief in the bitcoin industry's promising future.