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Hotbit to shutdown, Urges Shiba Inu Holders to withdraw fund

Hotbit has directed the Holders of Shiba Inu to withdraw their fund pending their decision to shut down its operation. The popular crypto exchange with its base in Asia-Pacific (APAC), has concluded the decision to cease operation after 5 years.

This was made known in a tweet by Hotbot disclosing the decision of the network to cease all centralized exchange (CEX) operations.

The exchange has given Shiba Inu’s holders and other investors that were using their exchange a deadline of 21 June to withdraw their assets.

The management of Hotbit mentioned the recent crises that engulf the industry pointing at the collapse of FTX, which is the second-largest crypto exchange at its peak.

Read Also: Comparing Centralized And Decentralized Crypto Exchanges (Advantages & Disadvantages)

The exchange mentioned that this event lead to fund outflow from its network and drastically lead to a cash increase.

Furthermore, the team mentioned that the complexity of operating a centralized exchange is becoming burdensome daily, making compliance with regulation difficult or adapting to the trend of a decentralized exchange, consequently, Hotbit highlighted that their decision to cease operation is a result of not meeting up to the industry’s trend.

Shiba Inu”s community extends sympathy to Hotbit.

A prominent development team member of Shiba Inu Lucie expresses sympathy to users that are facing financial losses that are trending on Hotbit’s network at the moment.

In her comment on the post by Hotbit to cease operation, Lucie repeated her warning and encourage those affected to swing to quick action to prevent them from losing their fund.

Read Also: Binance Adds New Feature That Allows Users To gift Crypto (Including Shiba inu) To Their Loved Ones

Noted that the influencer Lucie warned the community of the danger of buying BONE, the governance token for ShibaSwap, on Hotbit. Her point was that BONE was listed under a strange ticker and an erroneous network, stressing that such is deceptive behavior.

She further explained that those who mistakenly purchased the token were not able to withdraw.

This is not the first time the exchange has seized operation, on August 2022, Hotbit shut down all operations because of an alleged involvement of their former management employee in a fraudulent act.

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