The Hotbit cryptocurrency exchange has announced the cessation of operations after five years of activity. All users were asked to withdraw funds by June 21.
It’s time to take a bow ?
For 5 years and 4 months, the Hotbit team has been proud to participate in a wonderful crypto show with 5 million users. However, it is with great regret that we have made the decision to stop all CEX operations from May 22, UTC 04:00. We kindly ask all…— Hotbit News (@Hotbit_news) May 22, 2023
One of the reasons cited by the team for the closure was the “deterioration of operating conditions”. According to a press release, over the past year the crypto industry has undergone a series of crises that led to an outflow of user funds from centralized platforms (CEX), including Hotbit.
“The cascading collapse of major centralized institutions has driven the industry toward two avenues: regulation or decentralization,” according to Hotbit’s statement.
The team believes that CEX are becoming inconvenient, and complex regulatory rules make them less attractive in the long term.
“Hotbit proudly participated in a wonderful crypto show with 5 million users. […] We still believe in a bright future for crypto innovation, and some of us will continue to fight for it,” the press release says.
Earlier in August 2022, Hotbit paused trading, deposits and withdrawals for all clients. At that time, part of the platform’s assets were frozen as part of an investigation into a former employee of the exchange, which hindered the company’s full operations.