Huobi announced it is also affected by the FTX Bankruptcy. Huobi announced that $18.1 million in crypto couldn’t be withdrawn on FTX, and $13.2m are customer assets while $5m are Huobi’s assets.

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 They have $18.1 million in crypto that can't be withdrawn on FTX.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?

reddit imageHuobi announced it is also affected by the FTX Bankruptcy. Huobi announced that $18.1 million in crypto couldn't be withdrawn on FTX, and $13.2m are customer assets while $5m are Huobi's assets.

50 thoughts on “Huobi announced it is also affected by the FTX Bankruptcy. Huobi announced that $18.1 million in crypto couldn’t be withdrawn on FTX, and $13.2m are customer assets while $5m are Huobi’s assets.”

  1. Why did Huboi put their customers crypto on FTX?

    Customers could have skipped the middle man and put the crypto directly with FTX themselves

  2. Sounds like another case of an exchange treating customer funds like a credit line.

  3. Its actually shocking how many exchanges simply dont use cold wallets. It makes even more sense because you avoid situations like this but also as an exchange youre more of a target for hackers than individuals

  4. Uber has no cars, Airbnb has no real estate, exchanges have no coins. New economy my ass. What a f*cking joke!

  5. We are seeing the ripple effect of FTX collapse and I am guessing there’s more to come

  6. Huobi is the third exchange to have issues. Glad to see the bear market taking the trash out

  7. Were they able to get the unsecured loan for $14M? Is $32M debt material for Huobi?

  8. Maybe Huobi was lending those funds to FTX, so FTX users could use them to trade in Margin.

  9. I’m starting to believe they were all in on the fix, every single fucking exchange is shady as fuck.

  10. It’s beginning to look like one or two more CEX will fall before things settle down

  11. This is like 0.05% of their assets. It could have been there for various reasons, as in cdc case, to hedge against customers’ trades. Coinbase has had the same issue. I would take anything with a grain of salt cause who knows what the fuck they are doing backscenes, but these numbers aren’t that scary and shouldn’t cause more panic.

  12. Crypto, like most great things, operates perfectly as an ideal and then a human just comes along and fucks it up

  13. And funny enough.. they are likely insolvent kept propped up only by their own stupid token

  14. I used Huobi instead of KuCoin because “ku” means penis in some Asian languages. Now I realize it doesn’t matter because they are all dicks.

  15. Crypto just prove the point of traditional banking. And why it has survived for hundred years

  16. Can’t wait till this is all over, my heart bleeds for anyone and everyone who has lost their money during these troubling times

  17. This goes to show you we have no idea who is gambling with our funds. There is a reason you hear over and over about not keeping a significant amount on an exchange.

  18. I don’t understand. Self custody is not difficult. Multisig cold wallets. It’s not rocket science. If I can do it surely a multi billion dollar exchange can do it.

    Did people not learn their lesson about counter party risk from LUNA and Celsius? It boggles the mind…

  19. wtf why was everyone handing money to FTX? Cant anyone just gamble with their costumers money? Why did they hand it off to another exchange? Is this was all the plan from get go?

  20. https://twitter.com/WuBlockchain/status/1591962468666191872

    Huobi Hong Kong got a loan from their controlling shareholder to cover the hole. Which means if you have anything on there now’s the time to get it off.

  21. LOL so Huobi was trading using their customer’s funds and FTX was trading using Huobi’s funds

  22. At least $18 million is a drop in the bucket compared to the $1 billion plus insolvency FTX had.

  23. It’s for liquidity purposes, can’t explain it well

    Also it’s Huobi Hong Kong, not Huobi Global

  24. Exchanges are like banks now, they lend and invest in each other

    But unlike banks, if one falls then it affects the rest

  25. Why is making money on trading fees not enough? Why does every exchange feel the need to morph into a casino??

    There’s a business opportunity here.

  26. Huobi using customer assets to gamble… these Mofo’s

    Why are these CEX’s gambling with customer assets when they shouldn’t as it’s illegal.

  27. The amount of shady shit going on between these exchanges is astronomical.

    Gambling other peoples money with zero accountability.

    What are people supposed to do? Just take their word that it was 13m of customers funds and only 5m of their own? Sure while they’re at it why didn’t they just make it 17 million of customers funds…

    People need to learn, use an exchange for what it is for… to exchange your money for crypto/ vice versa. Not use them as a wallet to store your coins.

  28. CZ said there are more trouble to come. His group looked at the books when the acquisition was going through due diligence.

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