The cryptocurrency trading platform Hotbit tried to rug pull on some of its users. The Decentralised Finance (DeFi) project RichQuack tweeted that Hotbit had carried out a rug pull against it.
According to the tweet, the cryptocurrency trading site reportedly sold 256 trillion QUACK tokens that belonged to $QUACK users on the PancakeSwap platform.
Once more, RichQuack asserted that the Hotbit platform had lost its whole balance of almost $100,000 in cryptocurrencies, notably USDT and QUACK.
RichQuack claims that no response has yet been offered in response to the DeFi project’s requests to move through with withdrawal. Both DogelonMars (ELON) and BabyDogeCoin (BABYDOGE) appear to have been impacted by the suspected rug pull.
On-chain data insights have shown that the exchange may be actively involved in project-specific dumping actions. BSC Scan reports that Hotbit has dumped ELON for $500,000 and BABYDOGE worth 4,000 BNB on PancakeSwap and Uniswap, respectively.
Other than RichQuack, no projects or investors have thus far disclosed any breaches or attacks.
Notably, the trading platform declared its intention to stop operating its centralised exchange in June, citing poor operational circumstances and developments in the larger crypto industry.
Therefore, it was urged to all users to remove their funds prior to June 21. Before making this difficult choice, Hotbit stopped allowing deposits and withdrawals on its platform since August 2022, when the crypto winter was at its worst.
In the course of a criminal investigation involving a former employee, the law enforcement authorities had taken possession of its assets.
The collapse and insolvency filing of FTX Derivatives Exchange, which took place in November, had a far bigger effect on the company. As per Hotbit, the FTX collapse led to “continuous outflows of money from CEX customers and worsening cash flow.”
The bankrupt crypto exchange has received little attention since the termination of its CEX operations until today. Hotbit has yet to provide a formal response.
 project RichQuack tweeted that Hotbit had carried out a rug pull against it. ){kind=link}