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Top crypto exchange Hotbit halts its financial activities after ex-employee faces law regulators

The cryptocurrency exchange Hotbit said on August 11 that its trading, depositing, withdrawing, and financing activities have been halted, and there is currently no timeframe as to when services will resume.

Hotbit says “an ex-employee of Hotbit’s management team who left the company in April of this year was, unknown to Hotbit, participating in a project in 2021 that law enforcement authorities now believe is suspected of breaching criminal laws.”

As a direct consequence of this, a number of top management at Hotbit have been summoned by law enforcement since the end of July and are now working with the investigation. In addition, law enforcement agencies have placed a freeze on part of Hotbit’s cash, which has prohibited the platform from operating regularly.”

In addition, the company asserts that the other members of its staff were not in the project and are unaware of the illegitimate acts that are being claimed to have occurred.

The present location of Hotbit’s headquarters is in Hong Kong. As a direct consequence of the trading halt, every unfilled order that was placed will be cancelled, and any leveraged exchange-traded fund holdings would be closed out.

Meanwhile, Hotbit asserts that the earnings from users’ investment goods will be dispersed in the usual manner and that a “compensation plan” for consumers will be made public once the website is brought back up. In the last day and a half, Hotbit handled transactions involving digital assets valued a total of $25,6 million.

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Reporter
Jeewan Singh is CryptoShrypto’s content writer and a seasoned writer with over two years of experience in writing about Indian Securities Market. Jeewan's participation in Blockchain and Cryptocurrency started in late 2020, and he hasn't looked back since. The technical and economic outcomes of cryptocurrency are what spark his curiosity, and he keeps one eye on the market.
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