Hotbit Explains Why It Suspended Services For Clients Without Providing Resumption Timeframe

On Thursday, Hotbit made a concerning announcement for the entire customer base. The cryptocurrency exchange notified the users and stakeholders it had suspended its services until further notice.

Multiple Services Suspension by Hotbit

Hotbit announced on Thursday that it had suspended multiple services in the light of suspicions of potential fraud. The services it had suspended included funding, withdrawal, deposit, and trading.

At the time of suspending these services, Hotbit was not able to provide any timeframe for the resumption of these services.

The exchange not sharing such information with the users raised many concerns among the investors who were part of the exchange for a while.

Decision Explained by the Exchange

Following the suspension, the exchange provided the users with an explanation that had led them to make such a decision.

It revealed that one of its employees from the management who had left their company back in April 2022 was found violating criminal laws.

The law enforcement authorities had a suspicion of the person’s involvement in a fraudulent project from back in 2021. However, Hotbit was not aware of the person’s involvement but now, as the person is indeed found at fault, they have to take necessary precautions from their end.

The exchange revealed that due to the person’s involvement in a fraudulent project, the law enforcement authorities are investigating them as well.

Several of their senior managers and management personnel have been summoned by the authorities since the end of July for investigation.

They have been providing full support and assistance from their end in the investigation. In the meanwhile, the authorities have also frozen some of the accounts and funds belonging to Hotbit.

Therefore, the exchange is not able to function as normal and thus, has decided to suspend its services until further notice.

Further Claim by Hotbit

The notification also claimed that none of their employees or people in the management were involved in the illicit activities that the authorities were running an investigation.

The exchange went on to claim that until the matter has been resolved, the funds of the users will remain unusable. However, the users must not worry about their funds as they are safe with their exchange.

The funds are safe and untouched. Once the entire matter is resolved and the funds are unfrozen, the users will regain access to their funds. They have acquired the help of their lawyers to get the funds released from the authorities as soon as possible.

An Alarming Situation for the Users

Although the exchange has provided assurances, still, they are not enough to keep the users calm. They have their funds on the line, which is raising too many concerns among them.

The most concerning part for the users is that despite being frozen, Hotbit has processed digital asset transactions worth $25.6 million in the past 24 hours.