Hong Kong-based Hotbit, a centralized cryptocurrency exchange serving over five million customers, has announced its decision to exit the market. After operating for over five years, the exchange will officially cease operations today, May 22, at 04:00 UTC.
The exchange stated in a recent announcement that its operations has worsened following an investigation into a former team member in August 2022. Previously, a former employee of Hotbit had initiated their own project, which raised suspicions of potential violations of criminal law. As a result of this investigation, the exchange was compelled to suspend its business for several weeks.
The exchange also attributed its decline to a series of factors occurring within the cryptocurrency space. Notably, the exchange mentioned the collapse of FTX and the depegging event of USD Coin (USDC), which caused a decline in its cash flow. These incidents were said to have led to a continuous outflow of funds from centralized exchanges.
Furthermore, the crypto exchange pointed out that repeated cyberattacks and the exploitation of vulnerabilities by malicious users were significant contributors to the exchange’s downfall.
Hotbit will wind down operations and allow users to withdraw their remaining funds before June 21, at 4:00 am UTC.