Singapore-based cryptocurrency exchange Hotbit has suspended all activities, including deposits and withdrawals, over criminal investigations against its former employee, the company announced 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,” Hotbit said.
Law Enforcement Authorities Freeze User Assets
According to the official announcement, some of the company’s senior managers have been subpoenaed to court by law enforcement authorities for violating criminal laws.
The exchange disclosed that its former management staff, who worked with the firm until April this year, were involved in an undisclosed project in 2021, which has now attracted a criminal investigation into the firm.
Hotbit noted that the said project goes against its core principles and that law enforcement authorities are currently looking into it for violations of financial policies.
As per the announcement, the subpoenaed staff has been working with the investigators since July.
The crypto investment firm also noted that the investigators had frozen users’ assets on the platform, disrupting the company from its operations.
“Hotbit senior managers have been subpoenaed by law enforcement since the end of July and are assisting in the investigation. Furthermore, law enforcement has frozen some funds of Hotbit, which has prevented Hotbit from running normally.”
Customer Funds Are Safe
Due to the government seizure of the user’s assets, Hotbit noted that it had paused all services pending the release of the funds.
Additionally, the crypto exchange stated that the customer’s funds and data are secured and protected on the platform and would resume activities after the investigation.
The Singapore-based crypto platform also outlined how its customers’ assets would be treated during the freeze. Hotbit explained that users’ unfilled open orders would be canceled before the resumption of services to prevent loss of funds due to market volatility.
The company further pointed out that all customers’ leveraged exchange-traded fund (ETF) positions will be liquidated according to the relevant net values on August 10 to prevent losses. The firm also noted that income from users’ investment products would be shared accordingly.
Source: https://coinfomania.com/hotbit-suspends-withdrawals/#utm_source=rss&%23038;utm_medium=rss&%23038;utm_campaign=hotbit-suspends-withdrawals