Crypto exchange Hotbit suspends service after law enforcement freezes its funds, issues subpoenas to senior managers – Bitcoin News Exchange

Crypto exchange Hotbit suspends service after law enforcement freezes its funds, issues subpoenas to senior managers – Bitcoin News Exchange

Crypto exchange Hotbit has announced the suspension of trading, deposits, withdrawals and funding on its platform. The stock exchange said police had frozen some of its assets and called in some senior executives as they investigate a criminal case involving a former stock exchange employee.

Hotbit suspends trading, deposits, withdrawals

Cryptocurrency exchange Hotbit announced the suspension of its services on Wednesday. The company wrote:

We regret to inform you that Hotbit will have to suspend trading, deposit, withdrawal and funding functions. The exact time of resumption cannot be determined at the moment.

In the exchange, it was stated that the reason for the suspension is that the former employee of the administration is suspected of violating criminal laws.

The employee left Hotbit in April. Unbeknownst to the exchange, last year he was involved in a project that was in conflict with the company’s internal practices, the press release details.

Since the end of July, the police have summoned a number of senior Hotbit managers. They are currently assisting authorities in the investigation, the exchange added, specifying:

Furthermore, the police froze some of Hotbit’s funds, which prevented Hotbit from operating normally.

Hotbit’s website states that the exchange has more than 700,000 registered users from more than 210 countries. “Focusing on the world’s developing markets, such as the markets of Russia, Japan, South Korea, Turkey and Southeast Asian countries, Hotbit has gathered its users from Twitter, Telegram, VK and Facebook,” according to details on the website.

The exchange does not provide services for users in a number of countries, including the US, China, Singapore and Japan.

Hotbit is applying for the release of frozen funds, the stock exchange said, noting that on its platform “assets of all users are safe”. Moreover, the company claims that all user assets and stock data are “secure and accurate”, elaborating:

Hotbit will resume normal service as soon as the funds are unfrozen.

Hotbit has become the latest crypto exchange to halt payouts. On Tuesday, the German crypto exchange Nuri, formerly Bitwala, filed for bankruptcy. Recently, a crypto exchange based in Singapore Zipmex stopped the withdrawal and filed for a moratorium. Other crypto firms that have filed for bankruptcy include crypto lenders Voyager Digital and Celsius Network.

What do you think about Hotbit suspending service due to an investigation involving a former employee? Let us know in the comments section below.

Crypto exchange Hotbit suspends service after law enforcement freezes its funds, issues subpoenas to senior managers – Bitcoin News Exchange

Kevin Helms

An Austrian economics student, Kevin discovered Bitcoin in 2011 and has been an evangelist ever since. His interests lie in bitcoin security, open-source systems, network effects, and the intersection between economics and cryptography.




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