Honestly speaking when I first saw the news that Hotbit crypto exchange has suspended trading, deposits, and withdrawals, what came to mind first was another crypto exchange is about to go bankrupt hence bite the dust because every other crypto exchange or crypto lending firm that has filed for bankruptcy due to liquidity issues all started with suspending trading, deposit, and withdrawal services on their platforms before they eventually open up about their liquid issues then fill for bankruptcy from Celsius to Voyager to 3AC and recently Singapore-based crypto lending platform Hodlnaut joined the list and even took it a step further by withdrawing their license application from the Monetary Authority of Singapore.
Is There Hope Of Hotbit Coming Back From This?
A few weeks ago or even last week my answer would have been no, that there is no coming back for Hotbit but a few days ago when I read about the come back from the dead of Zipmex southeast Asia's crypto exchange that promised their customers that they would be back after they have sorted out their liquidity problem, they have shocked and amazed everyone with their come back this month, exactly 3 weeks after they suspended deposits and withdrawals on their platform, they have released 100% withdraw of altcoin on their platform but are yet to release the suspension on Bitcoin and Ethereum but they would do so this week starting from tomorrow but Bitcoin would be released first then Ethereum on the 16th.
But the suspension of trading, deposit, and withdrawal by Hobit were not due to a liquid problem but because senior managers in their firm were subpoenaed for allegedly violating criminal laws. According to Hotbit, a former Hotbit management employee who left Hotbit in April was involved in a project last year. This project goes unnamed in the release, however, law enforcement is investigating said project for criminal activity. Hotbit claims the project was against their internal principles and unknown to them at the time.
Law enforcement has also frozen Hotbit Crypto Exchange funds, stopping the service from running as normal. Hotbit has said while they are applying to release the frozen assets, all users’ assets are still safe. So there is hope for investors.
THANKS GUYS FOR READING MY POST.
PLEASE FOLLOW ME ON:
Discord: onwugbenuvictor#3447
Twitter: @VictorOnwugbenu
Posted Using LeoFinance Beta