Cryptocurrency exchange Hotbit reported the termination of activity after five years of work. All users were asked to withdraw funds until June 21.
The team cited “deteriorating operating conditions” as one of the reasons for the closure. According to the press release, over the past year, the crypto industry has experienced a series of crises that led to an outflow of user funds from centralized platforms (CEX), including Hotbit.
“The consistent collapse of large centralized institutions has led the industry down two paths: regulation or decentralization,” Hotbit said in the release.
The team believes CEXs are becoming uncomfortable and complex regulatory rules make them less attractive in the long run.
“Hotbit was proud to participate in a remarkable 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, Hotbit suspended trading, deposits and withdrawals for all customers in August 2022. At that time, part of the platform’s assets were frozen as part of an investigation against a former employee of the exchange, which prevented the full operation of the company.