Hotbit halts trading activities on its platform

TL;DR Breakdown
  • Hotbit suspends all activities on its platform
  • Authorities invite employees for questioning
  • The platform plans to compensate users

Hotbit has announced that all activities on its crypto trading platform have been suspended indefinitely due to a new update. In the statement, the company noted that all deposits, withdrawals, and trading of any kind are currently on hold at the moment. In the statement from the company, it announced that one of its former employees was involved in some activities before he parted ways with the company. In the new update, Hotbit announced that authorities have flagged the activities as illegal.

Authorities invite employees for questioning

With the new update, numerous staff consisting of top executives in the company have been invited for questioning by the authorities. Although things have progressed since it first surfaced in July, the exchange felt this suspension of activity was needed till things cleared up a little.

Also, the authorities have seized some of the funds belonging to the company as they are still under investigation, prompting the company not to run at its optimum level. However, Hotbit has mentioned that its employees that are not under investigation are in no way connected to the crime. Regarding the frozen assets belonging to users of the platform, the firm noted that it is striving toward returning to function optimally.

Hotbit promises to compensate users

Hotbit has reiterated that users with funds on the platform have nothing to fear regarding the suspension. All their funds and deposits are secured till the whole investigation clears out. Hotbit also noted that it is still in talks with the agency in charge of the investigation as it continues to press them to release the seized funds in the confines of the agency. Presently, the company has its headquarters office in Hong Kong.

With the suspension of all activities, it means that all orders would be canceled all positions that traders hold on the platform will go into liquidation. However, the platform has assured users who expect returns on their investments on the platform not to worry as they are working to continue to pay out their returns as when due. It also noted that it will roll out new information on how it will compensate users that are presently caught in this web when the platform gets up and running. Before it suspended its services, the crypto exchange had completed trades over $25 million over the last 24 hours.

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Owotunse Adebayo

Owotunse Adebayo

Adebayo loves to keep tab of exciting projects in the blockchain space. He is a seasoned writer who has written tons of articles about cryptocurrencies and blockchain.

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