Hotbits Shocking Shutdown: The Hassles of CEXs on the Rise

Hotbits Shocking Shutdown: The Hassles of CEXs on the Rise

Hotbit abruptly shuts down all of its exchange services citing the changing crypto scene after the FTX blowup and pointing to the rapidly changing crypto regulations.

  • Hotbit has shut down all of its exchange services.
  • The exchange cited changing the cryptocurrency scene after the FTX Trading Ltd blowup as one of the reasons for the closure.
  • Hotbit had a strong opinion about future of the centralized exchanges.

Centralized cryptocurrency exchanges (CEXs) have had perhaps the worst time in the history of cryptocurrency. After FTX Trading Ltd blew up in November a year ago, other exchanges started facing scrutiny from regulators.

1 of these exchanges, Hotbit, announced it is abruptly shutting down operations.

Hotbit Shuts Down Exchange

Hotbit, operating for over 5 years, has decided to close its doors without warning.

On Monday, the exchange released an official post introducing the reasons for the unexpected closure of its business.

Unleash Your Inner Crypto Guru: Learn How to Spot the Next Pepe Coin with AI Signals

Hotbit cited the FTX Trading Ltd blowup in November, along with the bank crises causing the USDC depeg in April, as one of the reasons why it decided to shut down. Hotbit likewise stated that it stopped operations for plenty of weeks in August 2022 owing to a previous Hotbit management employee being investigated by law enforcement.

The Rise of Pepe: Whales Haul in Big Profits

In addition of that, Hotbit likewise pointed to the rapidly changing cryptocurrency scene, especially concerning cryptocurrency regulations. The exchange revealed that centralized exchanges are becoming “cumbersome” that are “unlikely to meet longstanding trends.”

“The successive   collapse of large centralized institutions has led the industry to gradually in two ways: either embrace the regulation or become more decentralized. The Hotbit team  thinks that CEXs are becoming increasingly cumbersome, with highly complex and interconnected  enterprises that are difficult to comply with, whether for compliance or decentralization, and are unlikely to meet  longstanding trends.”

Hotbit likewise also mentioned that it had suffered “ numerous problems” over the years, including “repeated cyber attacks and the exploitation of project defects by malicious users, resulting in whole lot of losses.”

Ark Invest Goes All-In on Coinbase Despite SEC Lawsuit Turmoil

Hotbit no longer operates as of May 22 and has requested its users to withdraw their funds by June 21.

The other side

  • It’s unclear why Hotbit decided to shut down its exchange so rapidly. Law enforcement could be involved.

Why This Matters

Users who have funds on Hotbit should withdraw them as soon as possible. 

Read more about Coinbase’s new subscription service:

What Coinbase’s New Subscription Service Offers

Read more about Ethereum (ETH) deposits and withdrawals on Lido:

Lido Hits New All-Time High in Ethereum (ETH) Deposits as stETH Withdrawals Flatten


Read Disclaimer
This page is simply meant to provide information. It does not constitute a direct offer to purchase or sell, a solicitation of an offer to buy or sell, or a suggestion or endorsement of any goods, services, or businesses. does not offer accounting, tax, or legal advice. When using or relying on any of the products, services, or content described in this article, neither the firm nor the author is liable, directly or indirectly, for any harm or loss that may result. Read more at Important Disclaimers and at Risk Disclaimers.

Follow us

Latest Crypto News

Share via
Share via
Send this to a friend