Popular Bitcoin Exchange Suspends Operations: Investigation!

Popular Bitcoin exchange Hotbit has stopped trading, deposits and withdrawals until further notice.

Incident reaches out to an executive who left the company in April

All transactions will remain suspended until further notice, according to the exchange. Hotbit reports that its platform is currently forced to make strict decisions due to an ongoing criminal investigation it is facing. Hotbit officials say funds will be frozen over the course of the investigation. Frozen funds make it difficult for Hotbit to continue its day-to-day operations. “Users’ funds are safe, please don’t worry,” the exchange reassured on Twitter today.

What Happened on the Bitcoin Exchange?

A former Hotbit executive became involved last year in a fraudulent project deemed by authorities to be a violation of criminal law. It then dragged the exchange into a legal process that led to suspension of operations. Hotbit shares that law enforcement has called several Hotbit senior employees to court since last month. The exchange was in contact with law enforcement throughout the process. Hotbit summarized the event in a statement on its official website today:

(We are suspending operations) This is because a former Hotbit management employee who left Hotbit in April this year was involved in a project last year (which goes against Hotbit’s internal principles and is unknown to Hotbit) and law enforcement now violates criminal laws. is to take part in a project that they think is suspect. That’s why a number of Hotbit senior executives have been subpoenaed by law enforcement since the end of July and are helping with the investigation. In addition, law enforcement froze some Hotbit funds, which prevented Hotbit from working normally.

The Bitcoin exchange also shared an announcement about the treatment of user funds during the freeze:

  1. User’s unfilled open order will be canceled before Hotbit’s service is recovered to avoid losses from market fluctuations;
  2. To avoid loss from holding positions, all user’s leveraged ETF positions will be forcibly liquidated at their respective net values ​​by 15:00 on August 10, 2022;
  3. The income of the user’s investment products will be distributed as normal;
  4. Compensation plan for users will be published when the website is reopened, please wait patiently.

There is currently no timetable for when trading, deposits and withdrawals will resume on Hotbit. However, Hotbit is collaborating with law enforcement to follow up the investigation and continue the service. They will provide end-to-end updates as and when the investigation ends with results.

Contact us to be instantly informed about the last minute developments. twitterin, Facebookin and InstagramFollow and Telegram and YouTube join our channel!

Disclaimer: The articles and articles on Kriptokoin.com do not constitute investment advice. Cryptokoin.com does not recommend buying or selling any cryptocurrencies or digital assets, nor is Kriptokoin.com an investment advisor. For this reason, Kriptokoin.com and the authors of the articles on the site cannot be held responsible for your investment decisions. Readers should do their own research before taking any action regarding the company, asset or service in this article.

Warning: Citing the news content of Kriptokoin.com and quoting by giving a link is subject to the permission of Kriptokoin.com. No content on the site can be copied, reproduced or published on any platform without permission. Legal action will be taken against those who use the code, design, text, graphics and all other content of Kriptokoin.com in violation of intellectual property law and relevant legislation.

source site-1