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Huobi's Unit Provides 'Unsecured Financing' to Support Victims of FTX Drama

Mon, 11/14/2022 - 15:43
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Vladislav Sopov
Journalist and insider Colin Wu shares details of Hong Kong-based unit of Huobi's plan to cover client losses
Huobi's Unit Provides 'Unsecured Financing' to Support Victims of FTX Drama
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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.

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.

As covered by U.Today in October, Justin Sun, founder of Tron (TRX) and CEO of BitTorrent, started playing a crucial role in Huobi Global, became its advisor, purchased a huge amount of tokens and even replaced HUSD stablecoin by Tron's algorithmically backed asset, USDD.

Huobi Token (HT) Price Spikes by 21% After Justin Sun Reportedly Purchased Exchange

At the same time, Li Lin's Hong Kong-based entity has nothing to do with the alleged acquisition by Tron's founder and remains independent, Mr. Wu added.

HT price loses 50% in three weeks

Amid the overall crypptocurrency markets bloodbath, exchange tokens look like the worst performers, and Huobi's HT is no exception.

Catalyzed by rumors about Justin Sun's plans to purchase the exchange, Huobi Token's (HT) price jumped to almost six-month highs over $9.3.

Meanwhile, as crypto markets began sliding, HT suffered a lot of pain: its price bottomed at $4.1. By press time, HT is changing hands at $4.87, down 5% in the last 24 hours.

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About the author

Blockchain Analyst & Writer with scientific background. 6+ years in IT-analytics, 3+ years in blockchain.

Worked in independent analysis as well as in start-ups (, Monoreto, Attic Lab etc.)