The FTX contagion will take weeks if not months to be realized fully, Huobi has now announced that it has been affected by the FTX bankruptcy. They have $18.1 million in crypto that can't be withdrawn on FTX. $13.2Mare customer assets, with $5M being their own assets. Their solution is to get a $14m unsecured loan covering the client's loss, creating a $32m debt for Huobi.
Hbit is a subsidiary of Huobi Exchange
I have a few questions.
Why were the clients' funds on FTX in the first place?
Was Huobi trading using client funds?
Why was this information not revealed earlier?
Are they trying to hide this?
Why can't these exchanges just do their jobs, be satisfied with the fees they earn, and stop investing/trading with client deposits?