Hotbit has halted crypto trading, deposits, and withdrawals after law enforcement has frozen some of the company’s funds as part of a criminal investigation of its former employee.
The crypto exchange employed the person in question until April of this year. According to Hotbit, the individual was involved in an external project last year that violated the firm’s norms and is now accused of violating federal laws.
The statement stated that the rest of the team is not involved and is not aware of the case but that the firm is still cooperating with law authorities during this investigation. It stated that its lawyers had contacted the court to request that the frozen assets be released. “Hotbit will resume normal service as soon as the assets are unfrozen,” the company said in a blog post.
Hotbit is one of the biggest cryptocurrency exchanges serving Asia’s countries with around $350 million of the daily trading volume. It has obtained registration from Hong Kong and Estonia, with employees working from Taiwan, China, and around the globe.
The resumption of services is yet to ascertain, and the exchange has canceled all unfulfilled orders to avoid any unsecured losses.
Gargi Sinha is working as Senior Journalist at Confea. She has completed her Masters in Journalism from Delhi University. She has interest in crypto and blockchain technology.