• Huobi revealed that it had withdrawn all its assets from Signature and Silvergate Bank prior to their collapse.
• Justin Sun confirmed that Huobi has no exposure to the two banks and that customers’ funds are not affected.
• Coinbase and Paxos were among the platforms and crypto-related firms that got burned from their existing exposure to the two banks.
Huobi Withdraws Assets Before Banks Collapse
Huobi recently disclosed to Reuters that it had previously transferred all its assets from Silvergate and Signature Bank to other monetary institutions, ensuring customers’ funds remain unaffected by the recent banking crisis in the USA. Justin Sun – a member of Huobi’s Global Advisory Board – confirmed the news, adding that it did not cause any harm to company operations.
Silvergate Capital Experiences 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 including Coinbase and Paxos.
Signature Bank Closes Down
With Silvergate’s failure, numerous industry players shifted towards Signature Bank which suffered a similar fate this week when regulators closed down its operations. Coinbase was among those impacted but luckily not Huobi as they had already transferred all their assets out in time.
Huobi Remains Unaffected
Justin Sun expressed his confidence in Huobi’s safety stating that its customers’ funds remain unaffected by this banking crisis since all assets have been successfully transferred out some time ago. He added there is currently no financial partnership between Huobi and either Silvergate or Signature Bank.
Huobi once again proved itself as one of the most reliable exchanges on the market with its timely decision to withdraw all assets from both banks before their downfall, avoiding any potential losses for its customers due to lack of exposure during this banking crisis in US markets.