Huobi Subsidiary Fails to Withdraw Crypto Assets Worth Over $18M from FTX

The stunning FTX collapse has sent shockwaves down the crypto market. The latest firm to fall victim is Huobi’s brokerage subsidiary, Hbit Limited. The Hong Kong-based company has revealed that it is unable to withdraw $18.1 million worth of cryptocurrencies deposited in FTX.

• Out of the total funds stuck in FTX, $13.2 million are the client’s assets based on their trading requests, while the rest, $4.9 million, belongs to Hbit.
• The official announcement stated that the company will engage with a legal adviser to recover the digital assets and carry out appropriate steps to “liaise” with the bankrupt cryptocurrency exchange.
• Hbit believes that the incident may adversely affect its financial performance if not resolved.

“As at the date of this announcement, the Board is of the view that the Incident currently does not affect the normal business operations of the Group. As Hbit Limited is legally and operationally separated from other business entities of the Group, other assets and business lines of the Group will not be affected.”

• The filing also said that the group will continue to provide compliant, professional, and digital assets and financial services to its users.
• Fears of contagion amid the FTX fiasco have seeped into many well-known companies. One such is CryptoCom.
• Its native token CRO suffered massive sell-pressure and dropped almost 45% after concerns emerged that the Singapore-based exchange could be another victim of the ongoing liquidity crisis.
• However, its CEO Kris Marszalek dismissed contagion fears and claimed to have recovered $990 million from FTX.
• He even assured that CryptoCom has a strong balance sheet and said its exposure to the beleaguered exchange was limited to $10 million.