The person worked for the platform until April and was involved in an external initiative accused of breaking the law.
Hotbit has temporarily stopped its services while an investigation into a former employee is conducted. The individual worked for the platform up until the month of April and was involved in a project outside of the company that was accused of breaking the law.
Trading in cryptocurrencies, as well as deposits and withdrawals, have been halted by Hotbit as a result of authorities having frozen part of the company’s cash in connection with an ongoing criminal investigation into a former employee. The investigation is being conducted in connection with a breach of contract that occurred between the company and the employee.
The person in question was employed by the platform up until the month of April, when their position was terminated. According to what Hotbit revealed on Wednesday, the individual was involved in an external project in 2018, which went against the guidelines established by the company, and they are now suspected of violating criminal laws as a result of their involvement.
“Law enforcement agencies have placed a hold on some of Hotbit’s money, which has prohibited Hotbit from operating normally,” the company claims.
As soon as the assets have returned to their normal temperature, Hotbit will resume providing the services they normally do. It was said that the assets of the users will remain safe.
During the course of the investigation, numerous top administrators of Hotbit who were not actively involved in the project have been required to testify as witnesses. These individuals have been called in to provide their testimony as a result.
According to the details that are presented on its website, Hotbit is a business that holds dual registrations in the territories of Hong Kong and Estonia. The United States, Taiwan, and China each provide the company with the greatest number of workers.
In an effort to prevent further monetary losses, on August 10 at 12:00 UTC all open orders that have not yet been completed will be cancelled, and all leveraged exchange-traded fund (ETF) holdings will be forced liquidated according to their respective values.
According to information given by CoinMarketCap, the trading volume for Hotbit over the course of twenty-four hours was three hundred fifty million dollars.