Houbi Cut Ties With Signature Bank and Silvergate Before Their Collapse (Report)
Huobi had reportedly withdrawn all its assets from Signature and Silvergate Bank prior to their demise.
However, numerous other platforms and crypto-related firms got burned from their existing exposure to the aforementioned banks, including Coinbase and Paxos.
- Huobi disclosed to Reuters that its customers’ funds remain unaffected by the recent banking crisis in the USA since it has previously transferred all its assets from Silvergate and Signature Bank to other monetary institutions:
“Huobi previously had a bank account with Silvergate, but all assets were transferred out some time ago, and there is no financial partnership currently.”
- Justin Sun – a member of Huobi’s Global Advisory Board and also Co-Founder of the blockchain platform Tron – confirmed the news, adding that the ongoing turbulence did not harm the company’s operations.
- Recall that 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.
- With its failure, numerous industry players shifted towards Signature Bank. Nonetheless, it suffered a similar fate and was closed down by regulators earlier this week.
- The US-based cryptocurrency exchange – Coinbase – revealed it held $240 million in corporate cash at Signature, Paxos had a $250 million exposure, while Celsius Network did not specify how much was stuck there.
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I’m a journalist who specializes in investigative reporting and writing. I have written for the New York Times and other publications.