The Hotbit exchange stopped its activities due to legal problems of one of its former employees

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The cryptocurrency exchange hotbit has stated that it has suspended all transactions, deposits, withdrawals and funds on its platform. According to the exchange, law enforcement subpoenaed several top officials and froze some of their assets while investigating a criminal case involving a former employee of the exchange.

Illegal activity around the exchange

The reason for the suspension of the cryptocurrency exchange is that a former Hotbit management employee who left the company in April this year was involved in a project last year that violated criminal laws and was against the internal regulation of Hotbit. the exchange without the knowledge of their superiors.

After that, the police subpoenaed several senior Hotbit managers, who are now involved in the investigation since the end of July. In addition, the authorities have frozen a part of the exchange’s funds, which has prevented it from operating normally.

The cryptocurrency exchange Hotbit declared that;

Hotbit is working hard to continue to cooperate and monitor the progress of the investigation by law enforcement authorities, and will announce the results of the investigation as soon as they are available.

Exchange users cannot access its services in several countries, including the United States, China, Singapore, and Japan. Although, Hotbit did not indicate which legal authority is investigating its management or the total amount of frozen funds.

According to Hotbit, neither the platform itself nor other members of Hotbit’s management were allegedly involved in the illegal actions under investigation.

Furthermore, the exchange intends to continue its services when the assets are unfrozen, although it is not sure when that will be. Hotbit, a lesser-known crypto exchange that Binance Y coinbasereported a trading volume of $350 million the day before stopping, according to CoinMarketCap.

The most recent crypto exchange to suspend withdrawals is Hotbit, prior to that Singapore-based crypto exchange Zipmex stopped accepting withdrawals and requested a moratorium. And two prominent crypto lenders, VoyagerDigital Y Celsius NetworkThey also filed for bankruptcy.

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