Breaking: Hotbit Allegedly Goes on Selling Rampage, Rugpull Attempt?

Godfrey Benjamin
July 6, 2023
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CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
DeFi rug pull

There are suspicions that cryptocurrency trading platform Hotbit may have initiated a rugpull attempt on its customers. Decentralized Finance (DeFi) project RichQuack announced on Twitter that it had experienced a rugpull orchestrated by Hotbit. Based on the tweet, the crypto trading platform allegedly sold 256 Trillion QUACK tokens which belong to $QUACK holders on the PancakeSwap platform.

Altogether, the tokens were worth approximately $153,800 at the time of this writing.

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RichQuack Accuses Hotbit of Rugpull 

Again, RichQuack claimed that its balance of around $100,000 in crypto, specifically USDT and QUACK went missing on the Hotbit platform. 

The DeFi project’s attempts to proceed with withdrawal have not been approved and until now, RichQuack says no answer has been given. BabyDogeCoin (BABYDOGE) and DogelonMars (ELON) seem to have been affected by the alleged rugpull. 

Some on-chain data insights have suggested that the exchange is busy engaging in dumping activities across different projects. According to BSC Scan, Hotbit has dumped 4,000 BNB worth of BABYDOGE on PancakeSwap and another $500,000 worth of ELON on Uniswap. 

Apart from RichQuack, no other projects or investors have reported any breach or attack so far.

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Hotbit Shuts Down CEX Operations 

Noteworthy, the trading platform announced its decision to shutter its centralized exchange operations in June citing deteriorating operating conditions and changes in the broader crypto ecosystem. 

All users were, therefore, advised to withdraw their assets before June 21st. Before this tough decision was made, Hotbit had suspended withdrawals and deposits on its platform since August 2022 in the heat of the crypto winter. 

Law enforcement agencies had confiscated its assets during a criminal investigation that concerned a former employee. However, the firm was impacted much more by the implosion and bankruptcy filing of FTX Derivatives Exchange which happened in November. As Hotbit put it, the FTX collapse led to “continuous outflows of funds from CEX users … and deteriorating cash flow.”

Since the closure of its CEX operations, not much has been heard concerning the defunct crypto exchange until now. No official response has been made by Hotbit.

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Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.

Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

About Author
About Author
Benjamin Godfrey is a blockchain enthusiast and journalists who relish writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desires to educate people about cryptocurrencies inspires his contributions to renowned blockchain based media and sites. Benjamin Godfrey is a lover of sports and agriculture. Follow him on X, Linkedin
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.