Defi

USDC

<p><strong>Hotbit has been struggling since 2022, but now the exchange decided to cease all operations for good.</strong></p>
<h2 style="text-align: center;" id="ceasing-all-operations">Ceasing All Operations</h2>
<p>Hotbit, a cryptocurrency exchange, has announced that it is ceasing all operations and has encouraged its users to withdraw their funds. The exchange has faced deteriorating operating conditions since one of its team members was investigated in August 2022, leading to a temporary suspension of business. Hotbit also pointed to incidents within the crypto space, such as the collapse of FTX exchange and banking crises causing the depegging of USD Coin (USDC), as factors contributing to its declining cash flow. The exchange believes that centralized exchanges are becoming increasingly burdensome and may not align with long-term industry trends. It suggested that the options for exchanges are to become more decentralized or embrace regulation. Hotbit also cited cyber attacks and the exploitation of project defects by malicious users as reasons for its downfall.</p>
<p>Users have reported difficulties in withdrawing their funds from Hotbit following the announcement. The exchange has set a deadline for fund withdrawals, urging users to complete the process before June 21 at 04:00 UTC. The community has also been warned about phishing links posing as the official Hotbit exchange on Google.</p>
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">
<p lang="en" dir="ltr">It&#39;s time to take a bow 🙇<br />For 5 years and 4 months, the Hotbit team has been proud to participate in a wonderful crypto show with 5 million users. However, it is with great regret that we have made the decision to stop all CEX operations from May 22, UTC 04:00. We kindly ask all…</p>
<p>&mdash; Hotbit News (@Hotbit_news) <a href="https://twitter.com/Hotbit_news/status/1660496999458963458?ref_src=twsrc%5Etfw">May 22, 2023</a></p></blockquote>
<p><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></p>
<h2 style="text-align: center;" id="regulatory-pressure-and-operational-challenges">Regulatory Pressure and Operational Challenges</h2>
<p>In a surprising turn of events, two cryptocurrency exchanges, <a href="https://walletinvestor.com/magazine/huobi-and-okx-gain-ground-as-binances-crypto-dominance-declines" target="_blank" rel="noopener">Huobi</a> Global and Hotbit, are facing significant obstacles.<br />
Hotbit&#8217;s decision aligns with recent industry changes, acknowledging the shift towards regulatory compliance or decentralization, indicating potential inadequacy of the traditional CEX model for long-term sustainability. Despite being a pioneer in listing assets like SHIB, KSM, GRIN, and launching staking and Defi mining services, Hotbit&#8217;s decision is motivated by various issues, including repeated cyber attacks and exploitation by malicious users.<br />
In the meantime, Huobi Global faces significant penalties from the Securities Commission Malaysia (SC) for running an unauthorized digital asset exchange within Malaysia&#8217;s jurisdiction. The SC has ordered the platform to halt operations, disable its applications, and stop promotional activities targeted at Malaysian investors. The CEO has been entrusted with implementing these directives.<br />
These events highlight the growing regulatory scrutiny and operational challenges faced by centralized cryptocurrency exchanges worldwide.</p>
<h2 style="text-align: center;" id="hotbit-announces-cessation-of-cex-operations">Hotbit Announces Cessation of CEX Operations</h2>
<p>After 5 years and 4 months Hotbit has made the regrettable decision to stop all Centralized Exchange (CEX) operations starting from May 22 at 04:00 UTC. The exchange urged its 5 million users to withdraw their assets before June 21 at 04:00 UTC.<br />
According to the <a href="https://hotbit.zendesk.com/hc/en-us/articles/14750194236823" target="_blank" rel="noopener">official statement</a>, the decision is based on three main reasons. Firstly, the operating conditions have deteriorated following a team member&#8217;s investigation in August 2022, which led to weeks of suspended operations. Additionally, industry crises, such as the collapse of FTX and banking issues causing the USDC depegging incident, resulted in continuous fund outflows from centralized exchanges, including Hotbit, leading to worsened cash flow.<br />
Secondly, the industry trend is shifting towards either embracing regulation or becoming more decentralized. The Hotbit team believes that centralized exchanges are becoming increasingly burdensome, with complex and interconnected businesses that are difficult to comply with, making it unlikely for them to align with long-term trends.<br />
Lastly, Hotbit has faced repeated cyber attacks and exploitation of project defects by malicious users, causing significant losses. The operation model of supporting a diverse range of assets is considered unsustainable from a risk management perspective.</p>

Hotbit Exchange Halts Operations and Urges Users to Withdraw Funds

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