The FTX-Alameda drama is getting worse every day: more and more services are reporting their exposure to the collapsed platforms. The vast majority of them also invested customers' funds in FTX-tied activities. But are they ready to compensate the losses?
Huobi's founder provides $14 million to cover users' losses
Today, Nov. 14, 2022, Chinese crypto journalist Colin Wu announced that the Hong Kong-listed entity of leading Asian exchange Huobi has $18.1 million in crypto stuck on now-defunct exchange FTX.
Huobi’s Hong Kong-listed company announced that $18.1 million in crypto could not be withdrawn on FTX, of which $13.2m was customer assets. Controlling shareholder Li Lin will provide additional unsecured financing of up to $14 million, which will cover client balance sheets.
— Wu Blockchain (@WuBlockchain) November 14, 2022
Out of this sum, over $13.2 million in equivalent are customer assets. In order to compensate losses and cover clients' balance sheets, Huobi's founder Leon Li (Li Lin) will provide "additional unsecured fnancing."
The sum of liquidity injection by the Huobi veteran might total up to $14 million in equivalent.
