Centralised cryptocurrency exchange Hotbit has announced its closure after a five-year period of operation and asked customers to withdraw their remaining assets by June 21.
The company will cease operations on May 22. The decision to close was taken mainly due to the deterioration of the exchange itself. The announcement says that a series of crises, which began after Hotbit's management was forced to suspend operations for several weeks in August 2022, led to this.
Examples of such events include FTX collapse, bank closures, USDC stabilisation issues, etc. Hotbit representatives noted that the crypto world seems to be facing a dilemma: whether to follow regulatory requirements or become more decentralised. They added that centralised exchanges are becoming difficult to manage as their operations are complex and interconnected. Consequently, it is unlikely that this will continue in the long term.
In May this year, cryptocurrency exchange Bittrex declared bankruptcy after terminating its services in the US due to regulatory restrictions, and its subsidiaries suffered the same fate.
Moreover, UK-based audit and consulting firm Ernst&Young has publicly announced that creditors affected by the collapse of Canadian cryptocurrency exchange QuadrigaCX will receive an interim dividend equivalent to 13% of the funds owed.
