All operations on the exchange will cease today, May 22. The company explained that to a large extent the decision to close was influenced by the deteriorating conditions of the stock exchange itself.
“After Hotbit management was forced to suspend operations for several weeks due to the August 2022 investigation, the industry has experienced a series of crises,” the exchange said in a statement.
Those crises include the FTX collapse, bank closures, USDC pegging incidents and others.
Hotbit representatives explained that the industry has gradually become twofold: either accept regulation or become a more decentralized crypto-exchange.
“Centralized exchanges are becoming increasingly cumbersome, with very complex and interconnected businesses, and are unlikely to be consistent with long-term trends,” the company said.
In May, cryptocurrency exchange Bittrex filed for bankruptcy after shutting down operations in the U.S. due to regulatory pressure. The bankruptcy also applies to several subsidiaries of the exchange
Earlier, the auditing company Ernst&Young reported that creditors affected by the collapse of the crypto exchange QuadrigaCX will receive an interim dividend of 13% of the assets due.