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


The astonishing collapse of FTX has sent shockwaves through the crypto market. The latest corporate victim is Huobi’s brokerage subsidiary, Habit Limited. The Hong Kong-based company revealed that it was unable to withdraw $18.1 million worth of cryptocurrencies deposited in FTX.

  • Of the total funds locked in FTX, $13.2 million are client assets based on their trading requests, while the rest, $4.9 million, belongs to Habit.
  • The official announcement said the company will engage with legal counsel to recover the digital assets and take appropriate steps to “liaise” with the bankrupt cryptocurrency exchange.
  • Habit believes that the incident could negatively impact its financial performance if not resolved.

“As of the date of this announcement, the Board of Directors is of the opinion that the Incident does not currently affect the normal business operations of the Group. As Hbit Limited is legally and operationally separate from the other business entities of the Group, the other assets and business areas of the Group will not be affected.

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

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