thecoinrepublic.com
- 1 Hotbit suggested its users withdraw their holdings before June 21, 2023.
- 2 Increasing crypto attacks and the market’s downtrend are responsible for pausing operations.
Cryptocurrency exchange Hotbit announced on May 22, 2023 morning that it would halt all its operations starting today. According to the exchange, the decision to pause its operations after battling numerous negative factors during operations.
As per the company’s statement, the unprecedented FTX collapse and traditional banking crisis leading to the de-pegging of the USD Coin is one of the major factors responsible for the outbreak. It is important to note that the volatility of digital assets and continuous decline in the broader crypto market is also among the factors of ceasing operations.
As per the crypto exchange increasing cyber-attacks and malicious activities in the crypto industry have troubled dozens of exchanges. In Q1 2023, the number of frauds, scams, and attacks increased by 50% compared to the last financial year.
In an official statement, the company highlighted that the digital asset market has stirred after FTX and the banking crisis. These unprecedented events have eradicated the beliefs of investors and crypto enthusiasts from centralized exchanges.
The firm requested its users to withdraw their holdings before June 21. At the press time trading volume of Hotbit was $108,371,724.Earlier in 2021 TheCoinRepublic reported that hackers tried to get into Hotbit wallets, but the risk control system of the platform identified the attempt to breach data.
The exchange detailed that the bad actors had deleted the user database after failing to obtain assets. It cautioned the attacker had already gained access to the database. Users’ registered phone numbers, email addresses, and asset data may have been leaked.
Hotbit’s Significant Investments and Trading License
Hotbit has been actively working in the crypto industry since 2018 and has around five million of the total user base, and operates its business in approximately 210 companies. The exchange holds Estonian MTR, Canadian MSB, and Australian AUSTRAC licenses.
As per Crunchbase, Hotbit has significantly invested in five companies, including Arcade2earn, Orderly Network, Lootex, FanAnyWhere, and Torum. Data from CoinMarketCap states that the exchange has listed over 2000 trading pairs.
According to Coingecko, the total reserved value held by Hotbit is$18,324,132.75.
Crypto hackers steal cryptocurrency through phishing or enticing individuals to cryptocurrency exchanges. They can use software tools to lure people into crypto-related fraud.
The crypto hacking last year was the largest in history. It is approximately $3.8 billion. DeFi protocols and North Korea are responsible for the majority of the hacking. This figure drops dramatically in Q1 2023. The amount stolen is lower than in any other quarter in 2022.
At press time, Bitcoin’s leader, the leader of all cryptocurrencies, was trading $26,896 with a 24-hour volume of $11,050,886,823.
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational ideas only and do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.