Huobi Subsidiary is in trouble because of the FTX liquidity crunch
Hbit Limited announced that it may face financial challenges if it will not get its funds, which is stuck on the FTX exchange.
Hbit limited is one of the brokerage subsidiaries of the Huobi crypto exchange. Hbit limited announced that there was $18.1 million worth of crypto assets on the FTX exchange. Out of which $13.2 million worth of funds were clients’ deposits. Now all this amount of funds is on the FTX exchange and this Huobi subsidiary is not able to withdraw the funds because of the ongoing trouble with the FTX exchange.
The company also stated:
“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.”
Despite the ongoing situation, Hbit will continuously provide services as usual for the customers and also it will take the help of legal advisors to resolve this problem.
FTX liquidity crisis
Due to the mismanagement of user’s funds by the backend team of the FTX exchange, the exchange collapsed badly. The company filed for bankruptcy under chapter 11 in a US district court.
Except for a few affiliated companies, FTX filed bankruptcy for all of its subsidiaries. This thing resulted in a very big panic among crypto investors.
Reportedly Crypto.com exchange is on the line of facing a negative impact because of the downfall of FTX. CRO, a native token of CryptoCom, plunged more than 50%. Despite these ongoing hurdles, the exchange team is working to show proof of reserves to fight against the FTX cascade effect.
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