Huobi Subsidiary Unable to Withdraw Over $18 Million in Crypto Assets from FTX
The FTX implosion has sent shockwaves across the cryptocurrency industry. Hbit Limited, Huobi’s brokerage company, is the most recent casualty. The Hong Kong-based corporation has disclosed that it is unable to withdraw $18.1 million in deposited cryptocurrency from FTX.
Based on their trading requests, $13.2 million of the total funds blocked in FTX are customer assets, while the remaining $4.9 million belongs to Hbit.
According to the official notice, the corporation would work with a legal advisor to recover the digital assets and “liaise” with the insolvent cryptocurrency exchange.
Hbit feels the event might have a negative impact on its financial performance if it is not addressed. “The Board has determined that, as of the date of this statement, the Incident has not disrupted the Group’s regular business activities. As Hbit Limited is legally and operationally distinct from other Group business entities, other Group assets and business lines will not be impacted.”
According to the statement, the organisation will continue to offer its users compliant, professional, and digital assets and financial services.
Fears of contagion resulting from the FTX debacle have spread to other well-known businesses. Among them is CryptoCom.
Concerns arose that the Singapore-based exchange may be another victim of the continuing liquidity crisis, which resulted in huge sell-pressure and a drop of about 45 percent for its native token CRO.
However, its CEO Kris Marszalek rejected worries of contagion and said that FTX had reimbursed $990 million.
Even further, he said that CryptoCom has a solid balance sheet and that its exposure to the troubled exchange is capped at $10 million.
Also Read: FTX Believes It May Have 1 Million Creditors