HotBit is in the hot seat. A criminal investigation over ilegal alleged activities of a former employee has led to a freezing of client accounts. HotBit management has released a statement to clients and to the public insisting that freezing accounts is a temporary but necessary measure while investigations continue.
Is HotBit just like crypto platforms, such as Celsius, that froze client funds with the collapse of bitcoin price and staggering losses? Is it similar to fraudulent crypto brokers that operate under aliases and disappear with client funds? Or is HotBit simply unfortunate and a legitimate crypto platform that is trying to do the right thing?
What Happened with HotBit?
HotBit, which calls itself the “Worlds leading crypto platform” boasts of having 700,000 clients across the globe. The crypto platform says it is registered in Etonia and Hong Kong and its employees are located in the United States, China, and Taiwan.
Criminal investigations began in July over alleged activities performed by a single employee related to a company project. The employee left HotBit in April, law enforcement issued subpoenas in July, and company and client accounts were frozen in August.
HotBit management is insisting that they are fully complying with investigations and that the freezing of client accounts is only temporary. Should HotBit users be worried? Is this another case of a crypto platform that ends up on the wrong side of the law and vanishes without a trace, along with its clients’ money?
When Criminal Investigations Can Be a Silver Lining
CryptoCoinTrace experts examine many crypto scams and fraudulent brokers. We are adept at noticing certain patterns and red flags. Our customers often seek our guidance when they have lost money investing online or trading cryptocurrencies. They ask us whether a broker is a scam or legitimate.
So can HotBit customers hope to get their money back? Is this truly just a temporary investigation or is HotBit just another crypto fraud?
One observation about this case may be surprising–the fact that HotBit is under criminal investigation may be a silver lining for HotBit account holders.
Wait a minute, don’t we usually suggest that consumers stay away from any crypto platform or broker that has a history of criminal investigation? Yes. We don’t recommend clients sign up with any financial service that is facing legal action or investigation.
However, the good news is that people who already have an account with HotBit may benefit from the fact that law enforcement is already on the case. This isn’t the kind of fake broker that can disappear with client funds.
The client accounts are frozen by order of the authorities and not by the discretion of the company–in other words, there is no way they can run off with client funds if they had any inclination to do this.
There are no guarantees in this or any other situation, but since law enforcement is already heavily involved, the prospect of customers getting their funds back, as long as they haven’t been taken already, is quite good.
At CryptoCoinTrace, we work on behalf of customers to investigate their cases thoroughly and present a persuasive case to law enforcement. If you have lost funds to an online broker or a crypto platform, we can help you track down your funds.
What Should You Do If Your Crypto Platform Account Is Frozen?
If you currently hold an account with the following brokers, close it and demand an immediate withdrawal of all of your funds. If you do not receive a withdrawal from this broker contact CryptoCoinTrace experts. We consult with clients, advise them on claims and have the tools and methods to track down your funds. The sooner you talk to us, the greater the chances of a successful claim!