Hong Kong-based digital asset platform Hbit Limited revealed in an official announcement that it failed to withdraw $18.1 million worth of assets deposited on FTX, which is now bankrupt.
The crisis brought on by FTX’s downfall has spilled over into other markets and industries, and it shows no indications of calming down any time soon.
Data from Crunchbase shows that throughout the course of its three years of business, FTX sold shares worth about $1.8 billion. FTX shares are virtually probably worthless as a result of the company’s bankruptcy and billions of dollars in debt to creditors.
Moreover, Sequoia Capital, Temasek, and Paradigm are the three main investors in FTX. Together they have invested over $600 million into this company, which is now collapsed due to mismanagement.
Additionally, many venture capital firms that invested in FTX have not revealed how much they had invested. Only a few of these firms that are investing in both FTX and other projects have disclosed this information publicly.
Hbit Limited Holding Into FTX Exchange
The Board of Directors has released a statement informing the company’s shareholders and potential investors that Hbit Limited holds approximately $18.1 million worth of cryptocurrencies in the Exchange FTX (of which $4.9 Million belong to it and $13.2 million belong to clients).
According to the Hbit Limited statement:
As FTX group entities, including FTX, has filed for bankruptcy protection in the United States on 11 November 2022, the cryptocurrency assets may not able to be withdrawn from FTX (the “Incident”).
In order to ensure the security of its shareholders and the company as a whole, it was announced that the Group would consult with lawyers “to make enquiries with FTX” and offer them advice. Additionally, they will try to withdraw these cryptocurrency assets as soon as possible.
The Board currently sees no harm to operating due to the Incident. As Hbit Limited is legally and operationally separate from other businesses of the Group, it will not have any effect on other assets or business lines of the Group.
However, the Board expects that the Group’s finances will be negatively impacted if they cannot resolve this Issue. They will also talk with their auditors to find out how it would affect the Group’s financial standing.
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