Hotbit Halts CEX Trading Platform Operations

Hotbit, a platform for trading cryptocurrencies, has ceased all centralized exchange (CEX) operations, citing deteriorating operating conditions and a shifting crypto landscape.

On Monday, Hotbit announced that users have until 21 June at 4:00 UTC to retrieve their assets from the platform.

Hotbit, which claims to have 5 million users, suspended trading deposits and withdrawals last August after law enforcement authorities seized a portion of its funds during an investigation into a former employee.

After the collapse of exchange FTX in November, the broader crypto industry was plunged into crisis mode, resulting in “continuous outflows of funds from CEX users… and deteriorating cash flow,” according to Hotbit.

According to Hotbit, the crypto industry will shift toward more decentralized business models in response to stricter regulatory supervision of centralized firms following the collapse of FTX. Theoretically, decentralized businesses should avoid the risk of a singular point of failure, as with FTX.