Hotbit, a cryptocurrency exchange, has announced the suspension of its operations effective May 22. The exchange has requested its users to withdraw their funds by June 21, 4:00 am UTC.
In its statement, Hotbit revealed that its operating conditions have worsened since one of its team members was investigated in August 2022, leading to a temporary halt in business operations. The exchange also attributed its decline to various incidents in the crypto space, including the collapse of FTX and the USD Coin (USDC) depegging event that triggered banking crises and resulted in a continuous outflow of funds from centralized exchanges.
Hotbit expressed the view that centralized exchanges are becoming increasingly burdensome and unlikely to align with long-term industry trends. The exchange believes that embracing decentralization or adhering to regulatory frameworks are the only viable options.
The exchange also cited repeated cyberattacks and the exploitation of project vulnerabilities by malicious users as contributing factors to its decision to halt operations.
Following the announcement, some community members reported difficulties in withdrawing their funds from Hotbit. Additionally, cautionary warnings were issued to beware of phishing links pretending to be the official Hotbit exchange on Google.
While Hotbit exits the market, other exchanges are actively addressing issues within the crypto industry. Coinbase recently launched a campaign to “update the system,” while OKX aims to “rewrite the system” entirely.