On Monday, Huobi US took to its Twitter platform to inform its clients that they will cease operations next week.
9 December 2019 | AtoZMarkets – Huobi Group’s partner exchange aimed at American customers, HBUS, is closing its operations after a little more than a year in business. Announced 9 December, HBUS said it would stop offering trading services from 15 December and customers have until 31 January to withdraw their funds.
HBUS Cease to Operate: We regret to inform you that HBUS will need to cease operations so that it can return in a more integrated and impactful fashion as part of its ongoing strategic layout. Please refer to our FAQ and contact firstname.lastname@example.org— Huobi US (@Huobi_US) December 9, 2019
Will reconfigure strategy to make a comeback
The San Francisco-based exchange said it plans to “return in a more integrated” way as part of its ongoing strategic layout. However, no further details were disclosed.
Just last month, Huobi froze all accounts of U.S. users and encouraged users to use HBUS. “You may open an account in HBUS, if needed, the exclusive US strategic partner of Huobi Global, and transfer your assets to their platform,” the announcement read.
HBUS launched in the U.S. in July 2018 after long negotiations with Huobi Group. HBUS, a fully compliant U.S. entity, licensed part of Huobi’s software and used the Huobi.com domain. However, HBUS struggled to gain traction amid strong competition in the U.S. as well as internal issues. Huobi.com now once again directs to Huobi.
The shutdown follows the exits of key members of HBUS’ executive team. Oren Blonstein, who took over the CEO position in September, left the company in December, according to a source with knowledge of the situation. The post was previously helmed by Frank Fu, who is now a managing director at Fenbushi Capital.
DX.Exchange ceases operations, seeks acquisition or merger
The Huobi US unexpected shut down arrives a few days after DX.Exchange put up a shutdown notice, hinting at possibly restarting in the future. Estonia-registered crypto platform DX.Exchange ceased operations just nine months after its launch. The main reason, according to the announcement, was the financial difficulties in operating the exchange.
“The costs of providing the required level of security, support and technology is not economically feasible on our own.”