Hotbit

Hotbit operates as a cryptocurrency exchange platform. Its core service involves facilitating the trading of digital assets for its users. Based in Estonia, the exchange provides a marketplace for buying and selling various cryptocurrencies. The platform manages user funds through wallet systems, including cold storage solutions for enhanced security. It supports trading activities through open orders and offers specific financial products tied to user assets, generating routine income distributions.

The exchange experienced a significant cybersecurity incident on April 29, 2021. Attackers targeted Hotbit's wallets, leading to substantial service disruptions and the deletion of its database. Although the attackers were prevented from accessing digital assets, the breach necessitated a complete shutdown for investigation and system restoration, which was estimated to potentially last up to two weeks. During this downtime, Hotbit assumed responsibility for losses related to its specific financial products and planned to cancel all open orders upon service restoration to prevent unintended trading outcomes. Routine income distributions were deferred until maintenance concluded. The platform alerted users to heightened phishing risks and advised updating credentials reused elsewhere. Post-incident observations of suspicious wallet transfers were later confirmed as legitimate relocations to enhanced cold storage, indicating an operational response to bolster security following the attack.