• Hotbit exchange announced that it will be halting operations as of May 22, and asked its users to withdraw funds before June 21.
• The exchange blamed the deterioration of its operating conditions on a former team member’s investigation in August 2022, various incidents within the crypto space, and cyberattacks by malicious users.
• Other exchanges have launched campaigns to fix the issues in the crypto industry, such as Coinbase’s campaign to update the system and OKX’s efforts to rewrite the system entirely.
Hotbit Exchange Halts Operations
Crypto exchange Hotbit announced that it would be halting operations as of May 22 and urged its users to withdraw funds before June 21 at 4:00 am UTC. The exchange cited a variety of reasons for this decision including an investigation of a former team member in August 2022, FTX collapse, banking crises causing USD Coin (USDC) depegging event, cyberattacks by malicious users, and exploitation of project defects by malicious users.
Cause Of Deteriorating Operating Conditions
According to Hotbit, these incidents led to a continuous outflow of funds from centralized exchanges which made them increasingly cumbersome and unlikely to meet long-term trends. The only options are becoming more decentralized or embracing regulation if they want to stay competitive. Some members reported being unable to withdraw their funds from the exchange due to withdrawal option being disabled. There were also warnings about phishing links pretending to be official Hotbit exchange on Google.
Campaigns To Fix Crypto Industry Issues
Other exchanges have launched campaigns with some aiming at fixing the issues in the crypto industry such as Coinbase’s campaign “to update the system” while OKX wants “to rewrite the system” entirely.
Hotbit is taking its bow but other exchanges are still carrying on with their attempts at improving the current state of cryptocurrency industry through various campaigns aimed at fixing existing issues or rewriting entire systems altogether with improved features for everyone involved in using digital currencies for their daily transactions or investments purposes.