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Hong Kong-based crypto platform Hoo.com suspends withdrawals

Hong Kong-based crypto platform Hoo.com suspends withdrawals

Hong Kong based crypto platform Hoo.com has suspended withdrawals, days after the collapse of crypto hedge fund Three Arrows Capital, and other cryptocurrency platforms in Hong Kong have suspended withdrawals. 

On Sunday, crypto trading platform Hoo.com announced via Twitter, that it would be halting withdrawals, with the intention of restarting transactions within 72 hours so it could "process a large number of users'.

The number of major lenders to freeze withdrawals has increased over the past few weeks, with Hong Kong based Babel Finance suspended withdrawals on Friday, noting in the announcement that they were “facing unusual liquidity pressures”. This news came less than a month after Babel Finance revealed they had raised $80 million.

“Recently, the crypto market has seen major fluctuations, and some institutions in the industry have experienced conductive risk events. Due to the current situation, Babel Finance is facing unusual liquidity pressures. We are in close communication with all related parties on the actions we are taking in order to best protect our customers.” The announcement said.

In addition, a further Hong Kong-based staking and yield generation platform Finblox announced a series of measures they would be taking, including a $1,500 monthly withdrawal limit.

Crypto lender Celcius also suspended withdrawals on 12th June, with the company exploring their options to stay solvent, even consulting with its investors, which resulted in the company going for financial restructuring “to stabilize liquidity and operations while we take steps to preserve and protect assets.”

With Bitcoin falling below $20,000 on Saturday, investors have been facing pressure and uncertainty amid a wider crypto selloff. While Bitcoin rallied on Sunday, back to over $20,000, the recent action by a number of exchanges has created uncertainty in the space. 

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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