Monat: Mai 2023

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Crypto exchange Hotbit shuts down

  • Hotbit has announced that it will be halting its operations as from 22 May 2023.
  • The exchange cites the deterioration in operating conditions and the change in the cryptocurrency exchange trends among reasons for the decision.
  • The exchange has asked its users to withdraw their funds before June 21, at 4:00 am UTC.

Hotbit, a cryptocurrency exchange that has been in operation for over 5 years, has announced that it will be shutting down all operations.

A notice to customers from the exchange’s team on Monday noted that operations would be halted as from 22 May 2023, at UTC 04:00. Users have been asked to withdraw their remaining assets before June 21, 2023 at UTC 04:00.

Why did Hotbit shut down?

The decision to halt activities is down to multiple factors, including the deterioration of operating conditions and the change in the cryptocurrency exchange trends.

“After the Hotbit management team was forced to suspend operations for several weeks due to the investigation in August 2022 the industry has experienced a series of crises, including the collapse of FTX, bank crises causing USDC off-peg incidents, resulting in continuous outflows of funds from CEX users, including Hotbit, and deteriorating cash flow,” the announcement read.

However, Hotbit also suffered from a number of problems, including repeated cyber-attacks and the exploitation of project vulnerabilities by malicious actors.

Hotbit was founded in 2017 and quickly became one of the most popular cryptocurrency exchanges in the world.

The exchange’s shutdown comes at a time when the crypto industry is still navigating the negative impact of major collapses.

It’s also within an environment where regulators have increasingly tightened their crackdown on the industry. The past few months have seen major players like Coinbase, Ripple and Binance take the lead in asking for greater clarity in regulation from US regulators.

The post Crypto exchange Hotbit shuts down appeared first on CoinJournal.

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Ripple vs. SEC: Here’s why it could be “game over” for SEC in XRP case

  • SEC emails suggest XRP doesn’t satisfy all Howey factors, John Deaton notes.
  • The lawyer says SEC staff noted “reasonable grounds” to believe that XRP is not a security.
  • The SEC sued Ripple Labs and two of its executives for selling alleged unregistered securities in the form of XRP.

In latest Ripple news, a lawyer says the ongoing court battle between Ripple and the US Securities and Exchange Commission (SEC) could be game over for the regulator should the case go to a jury. 

The attorney made the comments after stumbling on references of SEC emails in the briefs and arguments Ripple presented before court in this long standing battle.

XRP not a security? SEC emails on XRP and Howey test

John Deaton, a pro-XRP lawyer that has followed the SEC vs. Ripple case since its filing in 2020, says new email details suggest staff at the US Securities and Exchange Commission (SEC) seem to have indicated there are “reasonable grounds” to believe XRP is not a security.

The emails are highlighted as part of the footnote in Ripple’s arguments against the SEC allegations. One of these is “exhibit 220.” 

Deaton said:

“Exhibit 220 is part SEC emails: XRP is mentioned and that there are reasonable grounds XRP doesn’t satisfy ALL Howey factors. HUGE.”

There’s also a citation of “SEC-LIT-EMAILS” which the lawyer points out relates to the Hinman emails.

“Since noticing this, I’ve been racking my brain about two things: 1) why wouldn’t Ripple lawyers make a much bigger deal about this (and not just include it in a footnote); and 2) how tf did I miss it before today (although to be fair I’ve read thousands of pages and do have a job)?” he tweeted.

As to why Ripple didn’t go hard on the SEC in light of these suggestions, he says it’s likely the fact that the information is not a direct quote from an SEC official. He argues that the emails might have been reference to an analysis of XRP and not an absolute statement of XRP not being a security.

SEC emails are “huge”, it could be game over if it goes to jury

Anticipation of a favourable ruling for Ripple continues to build across the crypto community. 

As CoinJournal covered here, this was evident when a recent ruling saw the XRP price react higher. And Deaton says the emails could be a game-changer in favour of the company if this goes to a jury. Some experts have opined that the SEC could choose to settle.

The lawsuit between Ripple and the SEC began in December 2020, when the SEC filed a complaint alleging that Ripple had violated federal securities laws by selling XRP as an unregistered security. 

Ripple has denied the allegations and has accused the SEC of overreach.

The post Ripple vs. SEC: Here’s why it could be “game over” for SEC in XRP case appeared first on CoinJournal.