BlockNews.com
  • Crypto
  • NFT
  • Metaverse
  • DeFi
  • Business
  • Technology
  • Opinion
  • Guides
No Result
View All Result
SUBSCRIBE
BlockNews.com
  • Crypto
  • NFT
  • Metaverse
  • DeFi
  • Business
  • Technology
  • Opinion
  • Guides
No Result
View All Result
BlockNews.com
No Result
View All Result
Home Business

Huobi Announced $18.1 Million In Crypto Can’t Be Withdrawn On FTX- $13.2m Are Customer Assets.

BlockNews Team by BlockNews Team
November 14, 2022
in Business, Crypto, Media
Reading Time: 4 mins read
A A
Houbi-Logo
1
SHARES
22
VIEWS
Share on TwitterShare on Reddit

Huobi has again been exposed following reports that the exchange still had $18.1 million in crypto stuck at bankrupt crypto exchange FTX.

You might also like

Crypto Exchange GMX Proposes Deployment to Coinbase Blockchain

Bitcoin Price Prediction: BTC Back Below $28K As US Banking Crisis Escalates

Crypto Flourishes in Vietnam with 16.6 million Holders

The news followed a Twitter post by intelligence firm Wu Blockchain, stating that Huobi cannot withdraw funds from FTX with an estimated $18.1 million. 

“Huobi’s Hong Kong-listed company announced that $18.1 million in crypto could not be withdrawn on FTX, of which $13.2m was customer assets. Controlling shareholder Li Lin will provide additional unsecured financing of up to $14 million, covering client balance sheets.”

It follows that out of the $18.1 million, only $5 million belongs to Huobi Group’s subsidiary, Hbit, while the remaining is $13.2 million in customer funds. Huobi Group subsidiary retweeted the message, confirming the inability to withdraw their investment.  

“On October 8, Huobi’s controlling shareholder company transferred all the shares of Huobi Global it holds to the fund of About Capital. New Huo Tech is an independent entity. All ops of Huobi are normal, & we will continue to provide customers with safe & reliable services.”

The announcement also revealed that Huobi had applied for a $ 14 million unsecured loan to help sort the $13.2 million they now owed customers. Reportedly, the movement established a $32 million liability for the company. 

In an official announcement, Huobi explained that the funds stuck at FTX do not affect normal business operations, as the affected Hbit is independent of Huobi Group’s other business enterprises that are entirely unaffected. 

Huobi’s reassurance notwithstanding, the company stated that it is not entirely safe, acknowledging that the $18.1 million exposure to FTX would affect Huobi Group’s financial performance unless a solution is found. A paragraph in the announcement reads:

“…the Board anticipates that the financial performance of the Group might be materially and adversely affected if the incident is not resolved. The Board will discuss with the Group auditor the impact of the incident on the Group’s financial position.”

However, as FTX filed for Bankruptcy on November 12, the chances of a solution are rather bleak. Besides Huobi, other companies have also declared exposure to FTX, including Mechanism Capital. 

Huobi Group’s Transparency in Question

In light of reports about FTX’s corporate sibling, Alameda Research, which had reserves primarily consisting of FTX tokens (FTT), the crypto market was alarmed, sending prices of several tokens crashing as investors tried to rescue their portfolios. The move by FTX in filing for Chapter 11 protection further sent a chill across the crypto market, causing prices to plummet even more. 

In the aftermath of FTX’s collapse, many crypto exchanges have had to take a stand in the court of public opinion on the question of transparency. The redeeming move for crypto platforms is to convince customers by posting proofs of their reserves. Huobi stands among exchanges that have published a transparency report showing it had accounts close to $3.5 billion, of which approximately $900 million is in Huobi tokens. At the same time, the remainder comprises holdings in Bitcoin, Ether, Tether, and TRX. 

Nevertheless, the exchange is now receiving criticism against the report after users identified a linked wallet sending 10,000 ETH to Binance and OKX shortly after releasing its asset transparency snapshot, suggesting foul play. Citing a Wu Blockchain announcement:

“After Huobi released the asset snapshot of the asset reserve, 10,000 ETH was transferred from 0xca…c3fc (Huobi 34) to Binance and OKX deposit wallets. The Huobi 34, which had 14,858 ETH at the time of the snapshot, currently has only 4,044 ETH left.”

Blockchain investigator Colin Wu highlighted the transactions on Etherscan, proving that Huobi had shown 14,858 ETH in its updated report, dropping to 2,463.5 ETH as of November 13. The flak calls out exchanges for manipulating funds, and such financial transfers are suspicious. 

Besides the Huobi exchange, Crypto.com and Gate.io have also received a lot of criticism after users spotted suspicious transactions in their transparency reports, calling them out for ‘faking their reserves”. 

Crypto.com has responded to the allegations defending that ETH transfers cited in their report are three weeks old and were returned to cold storage soon after before being sent to a whitelisted corporate account address. 

More exchanges are still making their cold storage information public with efforts to counter the rising mistrust among crypto investors following the FTX collapse. According to Binance, the objective is to allow users of our platform to be aware and make informed decisions aligned with their financial goals. 

Tags: BusinessFTXHuobi
TweetShareShare

Recommended For You

Crypto Exchange GMX Proposes Deployment to Coinbase Blockchain

by BlockNews Team
March 22, 2023
0
gmx exchange

GMX, a decentralized derivatives exchange, has received community approval to deploy the protocol on Coinbase's (COIN) recently announced layer2 blockchain, Base. GMX community members have expressed support for...

Read more

Bitcoin Price Prediction: BTC Back Below $28K As US Banking Crisis Escalates

by BlockNews Team
March 22, 2023
0
bitcoin price

Bitcoin price has been on a notable uptrend, rising 43% in a span of two weeks. The US banking crisis worsens and could claim First Republic Bank as...

Read more

Crypto Flourishes in Vietnam with 16.6 million Holders

by BlockNews Team
March 22, 2023
0
vietnam crypto

Vietnam has emerged as a key player in the international cryptocurrency market, with about 17% of its population possessing digital currencies. Bitcoin is the most popular digital currency,...

Read more

Crypto Twitter Thinks the Fed’s $297B Balance Sheet Expansion Is ‘QE’, but It’s Not

by BlockNews Team
March 22, 2023
0
crypto twitter

The most recent rise in the central bank's balance sheet, according to some analysts, is not as obviously stimulative as the one that came after COVID-19. The US...

Read more

Ripple-SEC Case: XRP Price Turns Bullish As Coinbase Hints At Relisting

by BlockNews Team
March 22, 2023
0
xrp

Coinbase could relist the XRP token if Ripple wins the ongoing lawsuit against the SEC. The exchange will initiate the relisting process immediately after the court pronounces itself...

Read more
Next Post
Binance-Logo

Binance is Introducing a Recovery Fund for Crypto Programs Facing Liquidity

Related News

CoinEx-Logo

RLWC 2021 Sponsors, CoinEx, Fires Up Audience in Manchester

October 10, 2022
DBS Bank

Singapore’s Largest Bank DBS Expands Crypto Trading To Its Wealthiest Clients 

September 26, 2022
ARize: 3D NFT Galore

ARize: 3D NFT Galore

May 8, 2022

Browse by Category

  • Breaking News
  • Business
  • Crypto
  • DeFi
  • Finance
  • Gaming
  • Guides
  • Investing
  • Media
  • Metaverse
  • NFT
  • Opinion
  • Politics
  • Social
  • Technology
  • Uncategorized
BlockNews.com

BlockNews.com brings you the most important Crypto and NFT news in the space.

CATEGORIES

  • Breaking News
  • Business
  • Crypto
  • DeFi
  • Finance
  • Gaming
  • Guides
  • Investing
  • Media
  • Metaverse
  • NFT
  • Opinion
  • Politics
  • Social
  • Technology
  • Uncategorized

RECENT POSTS

  • Crypto Exchange GMX Proposes Deployment to Coinbase Blockchain March 22, 2023
  • Bitcoin Price Prediction: BTC Back Below $28K As US Banking Crisis Escalates March 22, 2023
  • Crypto Flourishes in Vietnam with 16.6 million Holders March 22, 2023

© 2022 BlockNews.com - Crypto and NFT news website by JRNY Club.

No Result
View All Result
  • Home
  • Crypto
  • NFT
  • Metaverse
  • DeFi
  • Business
  • Technology
  • Opinion
  • Guides

© 2022 BlockNews.com - Crypto and NFT news website by JRNY Club.

Are you sure want to unlock this post?
Unlock left : 0
Are you sure want to cancel subscription?