Huobi, one of the well-known cryptocurrency exchanges, recently announced that its customers were not affected by the collapse of Silvergate and Signature banks.
Huobi Unaffected by Bank Collapses
It is known that Huobi had an account at Silvergate bank in the past. However, long before the bankruptcy news, exchange platform had moved all its assets on Silvergate to another bank. The company does not have any financial relationship with the collapsed banks. A Huobi representative said:
“Huobi formerly had a bank account with Silvergate, but all assets were moved out some time ago and there is presently no financial cooperation. Signature Bank money have been removed and transferred to other financial institutions.”
Many crypto-focused firms were affected by the bank collapse last week. Circle held $3.3 billion in the Silicon Valley Bank. In addition, stablecoins were exposed to the de-peg crisis. Exchange platform and its customers were not affected by the crisis and survived the crisis.
Huobi is Moving Step by Step Towards Its Goals
While market volatility has affected many crypto exchanges, the company has not suffered much financially. The company’s goal is to create a more reliable, accessible, and user-friendly platform. The fact that the platform has not suffered any financial losses and has not victimized its customers despite the crises is a significant development on the way to the company’s goals.
Taking Precautions
After the crises, many crypto-based companies have learned a big lesson. Therefore, the exchange plans to take precautions for the legal issues it may face in the future. While diversifying banking operations for the platform, legal arrangements are also being made to guarantee customer assets.
Leave a comment