Crypto Exchanges Bitfinex And Hotbit Under Criminal Investigation

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Crypto Exchange Platforms Bitfinex and Hotbit face criminal investigation as authorities begin cracking down on these firms. 

Hotbit suspends its trading services as authorities freeze the company’s assets due to a criminal investigation filed against one of Hotbit’s former employees. Said person left the firm in April and was part of an unnamed project that, according to the authorities, violated criminal laws. Hotbit also states that several of its senior managers were subpoenaed by law enforcement.

As a result, Hotbit claims it will forcibly liquidate all users’ leveraged ETF positions and cancel all unfilled open orders. Furthermore, the firm announced it would publish a compensation plan for its users once the website resumes its normal operations after its assets are unfrozen.

Meanwhile, Bitfinex may face a legal investigation after the US Department of Justice declines a Freedom of Investigation Act request on the grounds of Section b(7)(A) to prevent any pretrial publicity capable of impairing court proceedings.

Twitter user oleh86 issued an FOIA request in February to request all information in possession of the DOJ on Tether Holdings Limited and other iFinex subsidiaries. The DOJ, however, denied the request, stating that providing such records could disrupt enforcement proceedings.

Written by
Ayush Pande

Crypto Exchange Platforms Bitfinex and Hotbit face criminal investigation as authorities begin cracking down on these firms. 

Hotbit suspends its trading services as authorities freeze the company’s assets due to a criminal investigation filed against one of Hotbit’s former employees. Said person left the firm in April and was part of an unnamed project that, according to the authorities, violated criminal laws. Hotbit also states that several of its senior managers were subpoenaed by law enforcement.

As a result, Hotbit claims it will forcibly liquidate all users’ leveraged ETF positions and cancel all unfilled open orders. Furthermore, the firm announced it would publish a compensation plan for its users once the website resumes its normal operations after its assets are unfrozen.

Meanwhile, Bitfinex may face a legal investigation after the US Department of Justice declines a Freedom of Investigation Act request on the grounds of Section b(7)(A) to prevent any pretrial publicity capable of impairing court proceedings.

Twitter user oleh86 issued an FOIA request in February to request all information in possession of the DOJ on Tether Holdings Limited and other iFinex subsidiaries. The DOJ, however, denied the request, stating that providing such records could disrupt enforcement proceedings.

Written by
Ayush Pande