DeFi Firm RichQuack Reports RugPull by Crypto Exchange Hotbit

Hotbit Rugpull
Summary: Hotbit, a crypto trading platform, is suspected of attempting to rug pull on one of its users, RichQuack, a DeFi firm. Hotbit allegedly sold 256T QUACK tokens, worth around $153,800, and nearly $100,000 worth of its crypto holdings. Hotbit's centralized exchange operations were shut down in June due to poor operational conditions.

Hotbit, a platform for trading cryptocurrencies, is suspected of trying to rug pull on one of its users. RichQuack, a Decentralized Finance (DeFi) firm, revealed on Twitter that it had been the victim of a rugpull by Hotbit. According to the tweet, 256 trillion QUACK tokens belonging to $QUACK holders on the PancakeSwap platform were sold.

Tokens Vanished

The total value of all tokens was about $153,800 as of this writing. Once again, RichQuack reported that nearly $100,000 worth of its cryptocurrency holdings on the Hotbit platform vanished.

RichQuack claims that no response has been made to the DeFi project’s request for approval to begin the withdrawal process. Coins like DogelonMars (ELON) and BabyDogeCoin (BABYDOGE) seem to have been impacted by the suspected rugpull.

The exchange may be actively engaged in dumping actions across many projects, according to certain on-chain data insights. 4,000 BNB worth of BABYDOGE and another $500,000 worth of ELON were dumped by Hotbit on PancakeSwap and Uniswap, respectively, as reported by BSC Scan.

Struggling for Long

No other projects or investors than RichQuack have reported being compromised or attacked. Importantly, the platform’s centralized exchange operations were declared to be shut down in June, citing poor operational circumstances and changes in the larger crypto industry as the reasons.

Users were urged to get their money out of the system by June 21st. Since August 2022, when the crypto winter was at its worst, Hotbit has not let users make deposits or withdrawals until this difficult choice was reached.

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During a criminal investigation against a former employee, law enforcement authorities seized its assets. However, FTX collapse and bankruptcy filing in November had a considerably more significant effect on the company.

According to Hotbit, “continuous outflows of funds from CEX users… and deteriorating cash flow” resulted from the FTX crash. There hasn’t been much discussion about the defunct cryptocurrency exchange, since it ceased operating.

Pooja Bhargav