Kevin Helms
A student of Austrian economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open source systems, network effects and the intersection of finance and cryptography.
Crypto Exchange Hotbit Suspends Service After Law Enforcement Freezes Its Funds, Sues Senior Executives – Exchange Bitcoin News
Crypto exchange Hotbit has announced the suspension of trading, deposits, withdrawals and funding on its platform. The exchange said law enforcement has frozen some of the funds and subpoenaed some top executives while they investigate a criminal case involving the exchange’s former employee.
Hotbit stops trading, deposits, withdrawals
Cryptocurrency exchange Hotbit announced the suspension of its services on Wednesday. The company wrote:
We regret to inform you that Hotbit has to suspend trading, deposits, withdrawals and funding functions. The exact time of resumption cannot be determined at this time.
Børsen detailed that the reason for the suspension is because a former managerial employee is suspected of breaking the penal code.
The employee left Hotbit in April. Unbeknownst to the exchange, he was involved in a project last year that was against the company’s internal practices, the announcement says.
Law enforcement has subpoenaed a number of top executives at Hotbit since late July. They are currently assisting the authorities in the investigation, the exchange added, elaborating:
Furthermore, law enforcement has frozen some funds from Hotbit, which has 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 emerging 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,” the site says.
The exchange does not offer services for users in a number of countries, including the United States, China, Singapore and Japan.
Hotbit is applying for the release of the frozen assets, the exchange noted, stressing that “the assets of all users are safe” on the platform. Furthermore, the company claims that all users’ assets and data on the exchange “are secure and correct”, and elaborates:
Hotbit will resume normal service as soon as the assets are unfrozen.
Hotbit has become the latest crypto exchange to stop withdrawals. On Tuesday, German crypto exchange Nuri, formerly Bitwala, filed for insolvency. Recently, Singapore-based crypto exchange Zipmex stopped withdrawals and petitioned 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 the service due to an investigation related to a former employee? Let us know in the comments section below.
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