Due to FTX Bankruptcy, After Crypto.com Huobi Exchange Now Withdraws 12,000 ETH

JAKARTA – In the midst of the decline in the crypto market after the collapse of several leading companies in the crypto industry since the fall of Tera LUNA in May. Crypto companies Celsius, Voyager, BlockFi, Three Arrows Capital, and most recently, the bankruptcy of FTX.

The streak of events has dragged down the prices of most cryptocurrencies. This time, the crypto exchange company, Huobi, also experienced the shock of the FTX collapse. The crypto exchange has reportedly withdrawn 12,000 Ethereum cryptos from its platform.

However, Huobi confirmed that they will continue to insist on protecting and not expropriating users' funds, which will be fully withdrawn by the owners.

To promote transparency in the cryptocurrency industry, Huobi Global has published a detailed on-chain report on its digital asset holdings. Huobi holds about US$3.5 billion worth of digital assets in user funds.

The exchange has also promised to release another report in the next month to boost user confidence. In addition, trust in centralized cryptocurrency exchanges has been significantly closed by the collapse of the FTX company.

"To further increase user trust and accelerate our efforts to increase transparency, we are working to conduct another Markle Tree Proof of Reserve audit with a third party within 30 days", Huobi said.

Data from blockchain analytics firm CryptoQuant reveals as much as 12,000 Ethereum (ETH) has been withdrawn from the Huobi crypto exchange since publishing the balance sheet. Commenting on this, Huobi claims the ETH came from a hot wallet that is part of the crypto exchange company's routine operations.

“Outflows are part of routine operations. The real situation is that the addresses we listed include several hot wallets; On-chain deposits and withdrawals are part of normal operations. The exchange is operating normally now,” Huobi was quoted as saying by CoinDesk.

The collapse of the FTX crypto exchange forced several crypto exchange companies to publicly report their crypto holdings. Binance was the first exchange company to announce the report, which was followed by other crypto exchanges, including Bitfinex, and Huobi. This step is part of the transparency of crypto companies to avoid manipulation of digital asset ownership.

Before Huobi, Crypto.com as one of the leading exchanges had published their addresses, displaying how much and what cryptocurrencies were held on behalf of their customers. However, shortly after the information was announced, some members of the crypto community discovered that a massive Ethereum transaction of 320,000 ETH (worth 400 million US dollars) had been transferred to another crypto trading platform. This amount represents 80 percent of ETH owned by Crypto.com.

In response to the findings, Crypto.com CEO Kris Marszalek explained that the hundreds of thousands of ETH should have been transferred to a cold wallet. However, they are sent to crypto exchanges instead. However, the crypto community doubts Marszalek's explanation. They questioned that sending ETH could not have been done by accident.