Hotbit Stopped its Services After Fund Freezed By Law Enforcement

The leading crypto exchange platform, Hotbit, stopped its services of trading, deposits, withdrawals, and funding.
Law enforcement freezed some funds of Hotbit and also subpoenaed some of its senior managers regarding a criminal case investigation.

Hotbit’s Service Suspension

Hotbit announced its service suspension this Wednesday. The firm stated, “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 reason behind its service suspension is because some former management employees are under the investigation of violating criminal law.

It must be noted that the employee left the firm in April. As he was involved in a project previous year and violated the company’s internal practice, where the exchange was unaware about it all. Since the end of July, Law Enforcement subpoenaed many senior managers who assist the authority in the investigation.

The leading crypto exchange, Hotbit, further detailed, “Furthermore, law enforcement has frozen some funds of Hotbit, which has prevented Hotbit from running normally.” And as per its official site, “By focusing on the world’s emerging markets such as the markets of Russia, Japan, South Korea, Turkey, and Southeast Asian countries, Hotbit has gathered its users from Twitter, Telegram, VK, and Facebook.”

However, Hotbit has around 700,000 registered users from more than 210 countries. Unlike, the exchange does not provide its services to some countries like the U.S. China, Singapore and Japan. The firm further shared about the unfreeze by stating, “Hotbit will resume normal service as soon as the assets are unfrozen.”

The exchange emphasises that “the assets of all users are secure and correct” on its platform. Now, it became the latest crypto exchange to halt withdrawals. On the other hand some crypto exchanges like Nuri, Zipmex also filed for insolvency and moratorium, respectively.