Hotbit Goes on Selling Spree: Attempted Rugpull?

There are concerns circulating regarding the potential involvement of Hotbit, a cryptocurrency trading platform, in a rugpull scheme targeting its users. RichQuack, a decentralized finance (DeFi) project, recently took to Twitter to announce that it had fallen victim to a rugpull allegedly orchestrated by Hotbit. According to the tweet, Hotbit purportedly sold off 256 trillion QUACK tokens, which were held by $QUACK holders on the PancakeSwap platform. As of the time of writing, the total value of these tokens amounted to approximately $153,800.

RichQuack Accuses Hotbit of Rugpull

RichQuack has recently reported a loss of approximately $100,000 in crypto, specifically USDT and QUACK, from their balance on the Hotbit platform. The DeFi project has been unsuccessful in withdrawing their funds, with no response or approval from Hotbit provided thus far. This alleged rugpull has also impacted other cryptocurrencies like BabyDogeCoin (BABYDOGE) and DogelonMars (ELON).

On-chain data analysis has indicated that Hotbit has been actively involved in dumping activities across various projects. BSC Scan data reveals that Hotbit has dumped around 4,000 BNB worth of BABYDOGE on PancakeSwap and approximately $500,000 worth of ELON on Uniswap.

It is important to note that, aside from RichQuack, no other projects or investors have reported any breaches or attacks related to Hotbit at this time.

Hotbit Shuts Down CEX Operations

Hotbit, the trading platform, made an announcement in June to cease its centralized exchange operations due to unfavorable operating conditions and changes in the broader cryptocurrency ecosystem. As a result, all users were advised to withdraw their assets by June 21st. Prior to this decision, Hotbit had already suspended withdrawals and deposits on its platform since August 2022, during the challenging period known as the crypto winter.

The company faced additional setbacks when its assets were seized by law enforcement agencies as part of a criminal investigation involving a former employee. However, Hotbit experienced even greater impact from the collapse and subsequent bankruptcy filing of FTX Derivatives Exchange in November. This event led to a significant outflow of funds from Hotbit's centralized exchange users and a subsequent deterioration in cash flow.

Since the closure of its centralized exchange operations, Hotbit has remained relatively silent, with no official response or updates provided by the company regarding its current status.