• Huobi has no exposure to Silvergate and Signature Bank, as it had previously withdrawn all its assets from these two banks.
• Numerous other crypto-related firms got burned from their existing exposure to the aforementioned banks, including Coinbase and Paxos.
• Justin Sun – a member of Huobi’s Global Advisory Board – confirmed that the banking crisis did not affect the company’s operations.
Huobi Cut Ties With Signature Bank and Silvergate
Huobi disclosed to Reuters that its customers’ funds remain unaffected by the recent banking crisis in the USA since it had previously transferred all its assets from Silvergate and Signature Bank to other monetary institutions. Justin Sun – a member of Huobi’s Global Advisory Board and also Co-Founder of the blockchain platform Tron – confirmed this news, adding that the ongoing turbulence did not harm the company’s operations.
Silvergate Capital Reveals Operational Issues
Silvergate Capital revealed operational issues at the beginning of March and announced a liquidation plan a few days later. It acted as one of the main banks for the crypto sector, lending funds to multiple entities.
Signature Bank Closes Down
With Silvergate’s failure, numerous industry players shifted towards Signature Bank. Nonetheless, it suffered a similar fate and was closed down by regulators earlier this week.
Crypto-Related Firms Affected
Numerous other platforms and crypto-related firms got burned from their existing exposure to Silvergate and Signature Bank, including Coinbase and Paxos.
Huobi Remains Unaffected
Fortunately for Huobi customers, their funds remained unaffected due to Huobi having transferred all its assets out some time ago before these banks faced closure.