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Hotbit suspends payments – Crypto platform is on the field of honor

Bad times to trade – This beginning of 2022 will honestly be marked by an incredible number of crypto platforms ahead to suspend its activities, or even honest reliance on the courts in the liquidation procedure. Terri’s UST drop then drop from Celsius led to a cascade unfortunate consequences for exchanges financially fragile. But for hot bitit’s not really about that, but about the investigation concerning the ex an employee. Different causes, but the same effects. Users are, in fact, back in the water. The story of the last days to come.

Hotbit in turmoil over former employee

Let’s make a little note about this first platform a rather exotic cryptocurrency founded in 2018. The company is registered in Hong Kong and Estonia, but has headquarters in Shanghai and Taipei. The employees are mostly Americans, Chinese or Taiwanese. Present at 170 countriesalmost claims Hotbit1 million customers. So much for the presentations, now let’s move on to the story that interests us.

Everything officially begins April the last when one of the managers decides to leave the company for no apparent reason. After some time, to them lawyers from Hotbit declare that this person engaged in activities within the company that are considered ” contrary to Hotbit’s internal principles”. The company specifies that in no case was it aware of these actions. Local authorities suspect the activity illegal violating the criminal laws of the country. Since the end of July, a certain number of senior executives of the company have received a court summons for ” participate in the survey ».

“The platform suspends its activities, but your funds are safe” – Source: Twitter

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Platform activities are temporarily suspended

The legal team continues to proclaim the innocence of the leaders and declare through the press that ” other employees of the administration are not involved in the project and have no knowledge of the illegal information in the file“. While waiting to see more clearly, justice ordered freeze company assets. And so the accounts clients. Specifically,exchange suspended trading, deposit, withdrawal and funding functions on August 10, 2022″.

On its blog, the company provides some details about the situation to customers immediately.

  • Outstanding buy orders will simply be cancelled.
  • all leveraged ETF positions will be liquidated power based on net values ​​as of August 10, 2022 at 10:00 UTC.
  • income from various investment products will be distributed normally.

From offsets financials are also being considered, with no further details for now. finally, hot bit states for its customers: Don’t worry, the property is safe.

The lawyers have already requested it let go frozen funds and will not fail to inform the general public about the progress of the investigation. Sleep well folks, your money is unavailable right now, but you’ll be fine. Decisive between platforms in an unfavorable tie and wallets with a strainer, cryptocurrency looks more and more like the Wild West! Don’t put your savings anywhere…

Another one bites the dust… Another giant of the crypto ecosystem bites the dust. Avoid leverage for a while and you’ll be fine. Register without delay on the FTX reference cryptocurrency exchange platform. In addition, you benefit from a lifetime reduction in trading fees (commercial link, see terms and conditions on the official website).

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