The collapse of the bankruptcy of the crypto exchange FTX intensifies to the crypto industry. The Huobi-related subsidiary is the latest victim.

Citing “Failure to Withdraw Cryptocurrency Assets from Cryptocurrency Exchange FTX,” Hong Kong-listed company New Huo Technology Limited (HKEX: 1611) announced inside information on Monday that around $18.1 million worth of cryptocurrency owned of its subsidiary Hbit Limited are deposited in the cryptocurrency exchange. FTX, according to the latest announcement published on the Hong Kong Exchange.

Among the 18.1 million principal, about $13.2 million are “client assets based on client trading request and approximately $4.9 million are assets of Hbit Limited.” The publicly traded company has warned that crypto assets “may not be able to withdraw from FTX” due to the filing for bankruptcy protection declared by FTX on Nov. 11, which is suffering from a liquidity crisis.

The company’s board emphasized that it will continue to provide a secure, professional and compliant virtual asset financial service to clients:

“The Board is of the opinion that the Incident does not currently affect the normal business operations of the Group. As Hbit Limited is legally and operationally separate from other Group business entities, other Group assets and business lines will not be affected.”

The Board acknowledged that its financial performance could be affected if “the incident is not resolved.”

Meanwhile, another Hong Kong-based crypto exchange, AAX, is also suffering from the recent turmoil. AAX said on Sunday that the exchange is continuing to suspend withdrawals for seven to 10 days due to “a scheduled system update,” to protect users from malicious attacks.

Ben Caselin, vice president of AAX, tweeted early Monday that he acknowledges this is “a bad time for scheduled maintenance on @AAXExcahnge,” adding that the exchange “was aimed at addressing serious vulnerabilities, which will go on for over 24 years.” hours. Out of an extra precaution, this will take longer,” urging the public to allow AAX to gradually open up.

However, AAX emphasized that the exchange has no financial exposure to FTX or its affiliates, and its digital assets remain intact with a significant amount stored on cold walletsaccording to the statement.

FTX filed for bankruptcy protection last Friday after its exchange experienced a critical liquidity crisis as its native token FTT saw a massive price drop. FTX failed to make an acquisition by its main competitor Binance, citing that “issues are beyond our control or ability to help.”

FTX was reportedly accused of unauthorized use of its client’s capital to further the trading of its sister, Alameda Research. Furthermore, FTX also suffered a hacking incident last Friday, more than $600 million was laundered from their crypto wallets. Founder and former CEO Sam Bankman-Fried has resigned.

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