The Asian crypto exchange revealed the change in a blog post on Wednesday.
“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 said that it ensured every customer’s money was protected, and after the investigation was over, it would carry on with business as usual.
“Hotbit will resume normal service as soon as the assets are unfrozen. All user’s assets and data on Hotbit are secure and correct.”
Why have the Transactions been blocked?
The reason is that a former Hotbit management worker, who quit the company in April of this year, took part in a project last year that law enforcement officials now suspect may have broken the law and went against Hotbit’s core principles.
Law enforcement has summoned many Hotbit senior managers since the end of July, and these individuals are now helping with the investigation. Additionally, the legislation has frozen part of Hotbit’s cash, making it impossible for Hotbit to conduct business as usual.
When the assets are “unfrozen,” Hotbit will continue with the business. All user assets and data are exact and secure on Hotbit.
The inquiry findings will be made public as soon as they are available, and Hotbit is working nonstop to remain compliant and follow the development of the law enforcement agencies' investigation process.
Increasing Number of Defaulting Crypto Exchanges
As a result of several exchanges abruptly ceasing operations, everyone is now questioning the integrity of the entire crypto ecosystem. Netizens are once again feeling let down by this.
Crypto experts urge others to hold cryptocurrency for no more than 5-10% of their current portfolio. The risk-reward ratio no longer favors rewards. People think they are receiving excellent deals. Then, a month later, a bridge or exchange is lost due to compromise.
Recent occurrences include the suspension of withdrawals from funds exposed to cryptocurrencies by Scaramucci’s SkyBridge Capital and the abrupt closure of 2gether. This Spanish exchange prevented users from accessing their accounts. Holdnaut, another crypto exchange, also had blocked withdrawals recently.
Apart from these, the Crypto Industry has been battling withdrawal suspensions. The list is growing longer. Three Arrow Capitals, Celsius, ZipMex, Voyager, and Vauld, are a few other examples of exchanges that have halted transactions.