Crypto trading platform Hotbit halts services amid ex-employee investigation

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Cryptocurrency trading platform Hotbit announced on August 10 that it would suspend trading, deposits, withdrawals and funding functions, without specifying the exact time of their resumption.

To explain the decision, Hotbit claimed that a former management employee who left the company in April was involved in a project last year that law enforcement authorities now suspect breached the law. law. Hotbit said the project contradicted the company’s internal principles and that it was unaware of it at the time.

As a result, a number of senior Hotbit executives have been subpoenaed by law enforcement since late July and are participating in the investigation. Additionally, law enforcement froze some of Hotbit’s funds, which prevented the platform from operating normally.

Hotbit is registered in Hong Kong and Estonia, with most of its staff hailing from the Chinese mainland, Taiwan and the United States, according to its website.

Hotbit believes that the platform itself and the rest of its management staff are not involved in the project and have no knowledge of any related illegal activity.

SEE ALSO: Chinese regulators crack down on virtual currency publicity stunts

In an effort to quell the panic of crypto holders, Hotbit claimed that all assets are safe on the platform. Hotbit will resume normal services as soon as the assets are unlocked and will announce the results of the investigation as they become available.

Several days before this suspension of services, Hotbit was to list TFOX (Triangle Flow of X Token) on its global section. However, ListingSpy, a new aggregator of crypto token listings on PancakeSwap, Uniswap, and other leading DEX CEXs, found on August 5 that after listing, the market cap of this “shitcoin” was higher than ETH. and even BTC, then declined and traded. The token price chart looked ridiculous, ListingSpy noted. The price of the token has since fallen to around $1 now, according to crypto data site Nomics.

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