Crypto exchange Hotbit says it froze customer funds due to alleged criminal ties of formal employee
It is not yet clear how the alleged criminal misconduct of a former employee led to the freezing of users' funds by security forces. order.
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On Thursday, cryptocurrency exchange Hotbit said it had “suspended trading, deposit, withdrawal, and funding functions,” with no recovery time. Explaining the decision, Hotbit said:
“A former Hotbit management employee who left in April this year was, unbeknownst to Hotbit, involved in a project in 2021 that law enforcement authorities now believe he is suspected of violating criminal laws.As a result, a number of senior Hotbit executives have been subpoenaed by law enforcement since late July and are assisting in the investigation. order froze some Hotbit funds, which prevented Hotbit from operating normally."
The company further claims that the rest of its employees are not involved in the project and have no knowledge of the alleged illicit activities. Regarding frozen assets, Hotbit states:
"All users' assets are safe on Hotbit. Hotbit will resume normal service as soon as the assets are unlocked. All user assets and data on Hotbit are safe and correct. However, we are still actively cooperating with law enforcement authorities in their investigations and are constantly communicating with them through our lawyers and requesting the release of funds."
Hotbit is currently headquartered in Hong Kong. Due to the trading freeze, all unexecuted orders will be canceled and all leveraged exchange-traded fund positions will be liquidated. Meanwhile, Hotbit says income from users' investment products will be distributed normally and a "compensation plan" for users will be released when the website takes over. In the past 24 hours, Hotbit processed $25.6 million worth of digital asset transactions.
It is not yet clear how the alleged criminal misconduct of a former employee led to the freezing of users' funds by security forces. order.
New
On Thursday, cryptocurrency exchange Hotbit said it had “suspended trading, deposit, withdrawal, and funding functions,” with no recovery time. Explaining the decision, Hotbit said:
“A former Hotbit management employee who left in April this year was, unbeknownst to Hotbit, involved in a project in 2021 that law enforcement authorities now believe he is suspected of violating criminal laws.As a result, a number of senior Hotbit executives have been subpoenaed by law enforcement since late July and are assisting in the investigation. order froze some Hotbit funds, which prevented Hotbit from operating normally."
The company further claims that the rest of its employees are not involved in the project and have no knowledge of the alleged illicit activities. Regarding frozen assets, Hotbit states:
"All users' assets are safe on Hotbit. Hotbit will resume normal service as soon as the assets are unlocked. All user assets and data on Hotbit are safe and correct. However, we are still actively cooperating with law enforcement authorities in their investigations and are constantly communicating with them through our lawyers and requesting the release of funds."
Hotbit is currently headquartered in Hong Kong. Due to the trading freeze, all unexecuted orders will be canceled and all leveraged exchange-traded fund positions will be liquidated. Meanwhile, Hotbit says income from users' investment products will be distributed normally and a "compensation plan" for users will be released when the website takes over. In the past 24 hours, Hotbit processed $25.6 million worth of digital asset transactions.
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