By George Ward
The FTX meltdown is still causing havoc in the crypto market and industry. Unfortunately, due to the severity of the exchange’s debts, FTX was left to its own devices.
Binance first wanted to assist but eventually admitted that the issue was beyond its capabilities. Many crypto companies have gone into serious debt and acquired severe losses due to the FTX issue.
The latest among such companies is Hbit Limited, a subsidiary of Huobi. In an official notification, Hbit Limited stated that it could not withdraw $18.1 million in assets deposited on FTX.
According to the official notification, Hbit’s client owns $13.2 million worth of value stock out of the total value of stock owned on FTX. The assets were put on FTX in response to client trading requests.
Hbit Limited then owns the remaining $4.9 million out of the $18 million it could no longer withdraw.
However, Hbit Limited has announced that it will seek legal guidance. Also, it will follow all the mandatory steps to recover its asset from FTX.
Hbit Is Facing A Financial Crisis
According to Hbit’s release, if the problem is not rectified promptly, it will significantly influence the company’s financial results. Nevertheless, Hbit’s independence from its parent company (Huobi Group) means its issue has no impact on the parent company’s other commercial activities.
As a result, the group’s many business areas will continue to operate as usual. Moreover, the contagion from the FTX crash has spread to other cryptocurrency exchanges. Hence, the majority of crypto exchanges are facing heightened withdrawal levels.
Crypto.com is one of the cryptocurrency exchanges suffering similar difficulties. The native token of Crypto.com, CRO, has decreased by 45 percent, following a big sell-off since the FTX disaster.
Some factors influenced this drop. One of which was a rumor that the exchange might also be a victim of the liquidity crunch going on.
However, this rumor was debunked by Kris Marszalek, the firm’s CEO. Marszalek assured customers that the company only had a $10 million exposure at most to the recently collapsed crypto exchange FTX.