Cryptocurrency exchange Hotbit announced the termination of activities after five years of operation. All users were asked to withdraw funds by June 21st.
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
The team cited “deteriorating operating conditions” as one of the reasons for the closure. According to a press release, over the past year, the crypto industry has experienced a series of crises that have led to an outflow of user funds from centralized platforms (CEX), including Hotbit.
“The successive collapse of large centralized institutions has taken the industry in two directions: regulation or decentralization,” Hotbit said in a post.
The team believes that CEXs are becoming inconvenient, and complex regulatory rules make them less attractive in the long run.
“Hotbit is proud to be part of an amazing 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 said.
As a reminder, in August 2022, Hotbit suspended trading, depositing and withdrawing funds for all clients. Then, part of the platform’s assets was frozen as part of an investigation against a former employee of the exchange, which prevented the full-fledged work of the company.
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