Crypto exchange Hotbit announced that it would halt operations as of May 22. The exchange asked its users to withdraw funds before June 21 at 4:00 am UTC.
In an announcement, the exchange said that its operating conditions have deteriorated since a former member of its team was under investigation in August 2022. According to the exchange, the investigation forced him to halt his business for weeks.
Additionally, Hotbit also cited various incidents within the crypto space as contributing to its decline. The exchange cited the collapse of FTX and the banking crises that caused the USD coin (USDC) termination event as reasons for the deterioration of its cash flow. Hotbit said the incidents resulted in a continued outflow of funds from centralized exchanges.
The Hotbit team also believes that centralized exchanges are becoming "increasingly cumbersome" and are "unlikely to meet long-term trends." The exchange said that the only options are to decentralize more or adopt the regulation.
The exchange also blamed the repeated cyber attacks and the exploitation of โproject flaws by malicious usersโ as reasons for its downfall.
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When the announcement came, several members of the community reported that they were unable to withdraw their funds from the exchange.
How do we withdraw when the withdrawal option has been disabled? Enable withdrawal so we can withdraw our assets https://t.co/gXlGpR4hOV
- law (@law2762) May 22, 2023
Some also warned community members about phishing links that pretend be the official Hotbit exchange on Google.
As Hotbit takes its bow, other exchanges continue, with some launching campaigns to fix the problems in the crypto industry. Coinbase cryptocurrency exchange recently published a campaign to โupdate the systemโ. OKX went one step further; he wants to โrewrite the systemโ completely.
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