Cryptocurrency exchange Hotbit announced the closure after five years of operation and asked users to withdraw their remaining assets by June 21.
All operations on the exchange will be terminated today, May 22. The company explained that the decision to close was largely influenced by the deterioration in the working conditions of the exchange itself.
“After Hotbit management was forced to suspend operations for several weeks due to an investigation in August 2022, the industry has gone through a series of crises,” the exchange said in a statement.
Such crises include the collapse of FTX, bank closures, USDC peg incidents, and others. Hotbit representatives explained that the industry has gradually become twofold: either accept regulation or become more decentralized cryptocurrencies.
“Centralized exchanges are becoming increasingly unwieldy, with highly complex and interconnected businesses, and are unlikely to follow long-term trends,” the company said.
Crypto exchange Bittrex filed for bankruptcy in May after shutting down operations in the US due to regulatory pressure. The bankruptcy also extends to several subsidiaries of the exchange.
Earlier, the auditing company Ernst & Young announced that creditors affected by the collapse of the QuadrigaCX crypto exchange will receive interim dividends of 13% of the amount of assets due.
