Shanghai-based cryptocurrency exchange Hotbit has announced that it will cease operations on May 22, citing the increasing complexity of centralized exchanges. The exchange discussed how the continuous collapse of large centralized institutions has led the industry to embrace regulation or become more decentralized. Hotbit is closing its doors due to a deterioration of operating conditions following a range of crises, including the FTX collapse and bank crises causing USDC off-peg incidents, leading to a continuous outflow of funds from centralized exchange (CEX) users. In a blog post, the Hotbit team has urged its users to withdraw their remaining assets before June 21. Hotbit has faced cyber attacks as well as exploitation of project defects by malicious users, leading to significant losses. The current operating model of the exchange has proven unsustainable from a risk management standpoint, and the team has chosen to cease operations.