Crypto Platform HotBit Feels the Heat of Criminal Investigations

HotBit is the next of a series of crypto platforms to freeze client accounts. However, this time, the reason doesn’t appear to be cryptocurrency losses due to fluctuations in bitcoin price, but criminal investigations. 

Of course, there is often a connection between cryptocurrency and crime, but that doesn’t necessarily mean that HotBit is just another crypto fraud. The issue centers around a HotBit employee who left in April and who was allegedly engaged in illegal activities connected to a company project. 

HotBit management released a statement that it was fully cooperating with the investigation and the alleged activities were confined to this one employee who is no longer working at HotBit. 

Is HotBit Management Being Transparent?

HotBit management seems to believe that solving the problems of the company may come down to getting rid of the bad apple before it ruins the barrel. They may be right that the issue was confined to the suspicious activities of a single employee. 

However, the fact that this case arises at a time when crypto companies close due to insolvency or are facing accusations of allowing frauds to flourish on their platforms may lead to a significant tarnishing of HotBit’s reputation. 

HotBit is eager to demonstrate its cooperation with the investigation and is keeping the lines of communication with its customers open. HotBit management released a statement to its clients:

“We regret to inform you that HotBit will have to suspend trading, deposit, withdrawal and funding functions. The exact time of resumption cannot be determined at the moment.” 

With this level of transparency, HotBit is distinguishing itself from crypto frauds by keeping its customers informed of the criminal investigations. This isn’t a case in which customers are being shut out of their accounts or denied withdrawals by a broker run by anonymous people who can change their identities and disappear. 

Should HotBit Users Be Worried? 

The Broker Complaint Registry team is often asked whether a crypto platform or broker is a scam or legitimate. Although there may not be a formula to answer this question with 100% accuracy, we have enough expertise investigating suspected frauds that we are adept at detecting the signs. 

Although superlatives on HotBit’s website such as “world’s leading crypto platform” give us pause for thought about whether all of the company’s statements are reliable, one cause for hope is, ironically, the fact that HotBit is under criminal investigation.

Wait, shouldn’t these investigations be a red flag? Isn’t it better to avoid platforms and brokers that are being investigated? 

It certainly isn’t a positive for the company, but the involvement of the authorities, in this case, can be a silver lining for HotBit account holders. Since the authorities are involved in this situation, it means that HotBit can’t simply run off with client funds, if indeed, they were inclined to.

 When law enforcement, rather than the platform, is freezing the funds, clients certainly have a better chance of seeing these funds again, although that means waiting for authorities to conclude their investigation. 

Lost Money to a Crypto Platform? Talk to Broker Complaint Registry? 

We create these reviews to warn consumers about brokers and schemes that may be fraudulent. If you have an account with a broker on our scam brokers list, close it and request a withdrawal. If you are not given your money back, contact the Broker Complaint Registry right away. We will consult with you, work to track down your funds and create investigative reports that will help you with your case.