Former Huobi-linked entity says it has $18.1 million stuck on FTX
According to a new filing with the Stock Exchange of Hong Kong on Monday, investment holdings company New Huo Technology, formerly known as Huobi Global, said that it has $18.1 million worth of deposits stuck on troubled cryptocurrency exchange FTX. Of this amount, $13.2 million consisted of client's deposits, and $4.9 million comprised of assets belonging to Hbit, another subsidiary.
New Huo Technology is majority-owned by Chinese businessman Lin Li, who also created Huobi Global, the 20th largest crypto exchange worldwide by trading volume. On November 13, the company disclosed that it had reached an agreement with Li for an unsecured, non-interest-bearing credit facility up to a maximum of $14 million to cover customers' liabilities. Nevertheless, the company wrote:
The news appeared to have stirred investors' nerves on Twitter after initial confusion surrounding the company's former name, Huobi Global. Regarding this matter, the exchange issued the following clarification:
The news also arrived at a time of heightened panic over exchanges' solvency issues following FTX's collapse. Cointelegraph previously reported on Nov. 13 that both Huobi and Gate.io came under fire for allegedly sharing snapshots of reserves using loaned funds.
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