Hotbit, a popular crypto exchange has announced the suspension of crypto trading, deposits, and withdrawals on its network. The exchange confirmed the development in a blog post on its official handle. Reportedly, the move emanated owing to the suspected illicit acts of its former worker.
According to Hotbit, law enforcement agencies necessitated the freezing of the operations to aid the ongoing investigation. However, the exchange gave no assurance about when it intends to resume the operations on the network. But it assures customers of the safety of their assets.
Reportedly, the exchange sacked the employee last April. He was indicted for indulging in a project outside the firm during his time as an employee. Now, law enforcement agencies said the running of the project violated existing laws of the land.
Hotbit claims the development led to the invitation of some of its senior managers by law enforcement agencies. The exchange, however, affirms its commitment to helping and cooperating with the agencies in the ongoing probe. The exchange further that the agency froze some of its funds in connection with the issue. This, according to the firm, has affected its operations.
The exchange plans to cancel all pending orders on its network. More so, it plans to liquidate all leveraged Exchange-Traded Fund (ETF) holdings in line with their respective values. Notably, the development will not prevent users from gaining profits from their “investment products”.
Notably, Hotbit says it is taking steps to secure the release of its frozen assets from the agency. Additionally, the exchange promised to initiate a compensation plan as soon as its website resumes operation. The exchange urges all of its over 7,000,000 registered users from more than 210 countries to stay patient and look forward to subsequent updates in the future.
Hotbit joins the list of list firms halting withdrawal operations
Hotbit with this decision joins the numerous crypto firms that have halted withdrawals, deposits and other operations on their networks. Recall that Hodlnaut, a popular crypto lender based in Singapore, in early August, temporarily suspended withdrawals, deposits, and token swaps on its platform. According to Hodlnaut, the decision would help stabilize its liquidity and safeguard assets.
Similarly, Celsius, Vauld and others also halted withdrawals, deposits, and trading on its network a few months ago. Till date, some of these firms are yet to resume or announce dates for the resumption of the operations.
As of press time, Hotbit possesses a 24-hour trading volume amounting to $350 million.