- Hbit Limited, a Hong Kong-based digital asset marketplace, was unable to withdraw $18.1 million worth of cryptocurrency because of the now-bankrupt FTX.
- Over the weekend, the market’s instability intensified, which led to another drop in the price of digital currencies.
- As investors continue to deal with FTX’s startling collapse, one of the largest and most significant businesses in the field, the slide takes place.
The now-bankrupt FTX prevented Hong Kong-based digital asset marketplace Hbit Limited from withdrawing $18.1 million worth of cryptocurrency. In a statement to shareholders on Monday, New Huo Technologies Holdings Limited stated that $4.9 million of the subsidiary’s assets were Hbit assets and that the remaining $13.2 million belonged to clients through trading requests.
The announcement added, “The cryptocurrency assets may not be taken from FTX since FTX group firms, including FTX, filed for bankruptcy protection in the United States on November 11, 2022.
The turmoil enveloping the market grew worse over the weekend, causing prices of digital currencies to decline once more. The value of Bitcoin, the largest cryptocurrency in the world, has decreased by nearly 65% so far this year. According to CoinDesk, it was trading at around $16,500 on Monday. Analysts predict that it may drop under $10,000.
The decline occurs as investors continue to struggle with FTX’s shocking collapse, one of the biggest and most influential companies in the sector.
Industry insiders have referred to the company’s demise as a “Lehman moment,” alluding to the investment bank’s collapse in 2008 that rocked the whole world.
The incident has undermined trust in the cryptocurrency sector and will give international regulators more confidence to tighten the noose. Some of the greatest names in the industry stated that they would welcome the examination if it helped to rebuild public confidence in the sector.
Due to FTX’s issues, the cryptocurrency market has fallen, and the community is concerned about how this will affect the overall sector. Many other cryptocurrency exchanges have also disclosed exposure to FTX, including Crypto.com, which said it had a $10 million exposure, and Genesis, a trading firm, which claimed to have $175 million in frozen money in its FTX trading account.
Earlier in the week, Binance and FTX had reached a tentative rescue agreement, but the accord was quickly abandoned.