Here is another participant in the bitcoin industry that is struggling, following Voyager Digital. Following a subpoena from a number of its administrators, Hotbit Crypto Exchange has recently banned transactions on its site.
This is the recent news that was announced. This situation would be the result of one of the building’s employees committing a crime. Authorities are currently looking into Hotbit, and its money have been frozen. As a result, the platform’s operations are suspended.
Hotbit is not a part of this illicit endeavor.
This is what becomes clear from the official press release that the platform just delivered to its users. They provide justifications for the suspension of transactions and the freezing of funds in their press release.
They seize the chance to insist on their innocence. Hotbit guarantees users in this news release by stating that it is not associated with the project under scrutiny. They say they are collaborating with law enforcement to restore access to the platform’s assets.
📢Announcement on the Suspension of Hotbit Website Service on August 10th, 2022
— Hotbit News (@Hotbit_news) August 10, 2022
Details👉https://t.co/5hf6XS638y
⚠️User's assets are safe, please don't worry.
We are sorry for any inconvenience caused!😢 pic.twitter.com/x7wiIL7j1a
Who or what is the subject of this inquiry?
The press statement also reveals that a former member of the management was responsible for the fraudulent project that is the subject of the authorities’ inquiry. The latter would have exited the business in April of last year. Hotbit believed that this project, which was completed last year, violated company corporate policies.
So, a few queries come up: who is the employee in question? If Hotbit really did reject this project, how did he manage to complete it? How much harm has been done?
At this time, there is no response to any of these valid questions. There is still no information available about the press release.
Hotbit does, however, offer instructions on the users’ assets throughout the suspension.
How will the assets of Hotbit’s users be managed?
Customers are reassured by Hotbit regarding the protection of their possessions. Despite the fact that all transactions—including deposits and withdrawals—are halted, the platform has taken steps to protect investors’ funds. They can be boiled down into the following four measures:
- Orders that are open but have not yet been filled will be canceled.
- This is done to avoid any potential losses brought on by market swings.
- Positions in leveraged ETFs will be forced liquidated on this day, August 10, 2022, prior to 00:00 UTC. This is done to stop possible losses.
- Distribution of investment items will typically occur.
Details of a compensation plan will be adopted and made public later.
The goal of these efforts is to reassure Hotbit users. However, no information is provided regarding when the platform’s operations will resume. Users may get skeptical about this. This situation reminds me of how operations were suspended in April 2021 as a result of a hack and the disclosure of more than 2 million users’ data.
Are the two incidents related in any way? Nothing currently makes it possible to say it. Saying that the criminal scheme in question was the cyberattack from last year would be pure conjecture.
📢Announcement on the Suspension of Hotbit Website Service on August 10th, 2022
— Hotbit News (@Hotbit_news) August 10, 2022
Details👉https://t.co/5hf6XS638y
⚠️User's assets are safe, please don't worry.
We are sorry for any inconvenience caused!😢 pic.twitter.com/x7wiIL7j1a
