Hoo.com, a Hong Kong-based cryptocurrency exchange, yesterday announced a 24-72-hour stop on withdrawals. In a note, the company cited that market volatility and liquidations of large institutions in the cryptocurrency sector generated panic among users, leading to a large number of withdrawal requests.
This Monday (20), the company’s CEO tweeted that withdrawals for some tokens will be normalized today. However, part of the requests will remain frozen.
“Meanwhile, the transfer of backup multisig (multi-signature) wallets and other assets needs time to resolve,” wrote Hoo.com. “To process a large number of user asset withdrawals, the audit time for withdrawals can be delayed by 24 to 72 hours. After that, withdrawals will resume quickly.”
The exchange’s update comes as global cryptocurrency platforms grapple with withdrawal requests amid market volatility and uncertainty surrounding crypto hedge fund Three Arrows Capital, which has suffered heavy losses and is exploring options such as shorting. assets or redemption by another company.
On Thursday (16), Finblox, the Hong Kong-based cryptocurrency staking and passive income platform, imposed a monthly withdrawal cap of $1,500 and paused rewards due to uncertainty surrounding Three Arrows, which made a investment of US$ 3.6 million in Finblox last December.
Finblox said on Monday that it is “actively pursuing all available options (including legal remedies) to address the liquidity situation that has arisen due to recent developments by Three Arrows Capital and the market at large.”
According to Finblox, the company is consolidating the funds of all users to assess the impacts of the current environment. The company is “investigating and evaluating a number of possible scenarios and the potential effects these scenarios could have on the liquidity of our users’ accounts.” This includes resuming time for operations and withdrawals.
Meanwhile, Hong Kong-based cryptocurrency lending platform Babel Finance on Friday suspended withdrawals and redemptions, citing “unusual liquidity pressures.”
Today, however, Babel said in a statement that it had reached preliminary agreements with counterparties on the payment of some debts that led to the suspension of withdrawals. “We actively communicate with shareholders and potential investors and will continue to communicate and get support for liquidity.”
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