Having been in business for more than 5 years, the cryptocurrency exchange Hotbit has announced that it will be ceasing its activities.
Operations at the exchange will cease as of May 22, 2023, at UTC 4:00, according to a notification sent to customers on Monday. Users are urged to withdraw any remaining funds by June 21, 2023, UTC 04:00.
What caused Hotbit to close?
The decision to stop operations is the result of a number of issues, including the deterioration of operational conditions and the shifting patterns on cryptocurrency exchanges.
“After the Hotbit management team was forced to suspend operations for several weeks due to the investigation in August 2022 the industry has experienced a series of crises, including the collapse of FTX, bank crises causing USDC off-peg incidents, resulting in continuous outflows of funds from CEX users, including Hotbit, and deteriorating cash flow,” the announcement read.
But Hotbit also experienced a number of issues, including as persistent cyberattacks and bad actors taking advantage of project weaknesses.
One of the most well-known cryptocurrency exchanges in the world, Hotbit, was established in 2017 and rose to prominence swiftly.
The exchange’s closure comes when the cryptocurrency market is still adjusting to the negative effects of significant crashes.
Additionally, the regulatory framework in which it operates has seen authorities step up their pressure on the sector. Major businesses have taken the lead in requesting more regulation clarity from US regulators over the past several months, including Coinbase, Ripple, and Binance.
