(Yicai Global) Nov. 14 -- The stock price of New Huo Technology Holdings plunged after the digital assets management company said one of its units may be unable to withdraw about USD18.1 million from collapsed cryptocurrency exchange FTX.

New Huo Tech [HKG: 1611] ended more than 14 percent lower at HKD3.52 (45 US cents) a share, after earlier slumping over 21 percent.

USD13.2 million worth of digital assets belonging to clients and USD4.9 million of unit Hbit’s assets may be unrecoverable, Hong Kong-based New Huo Tech said in a stock exchange filing today.

FTX founder Sam Bankman-Fried said on Nov. 11 that more than 130 FTX entities, including crypto exchange FTX, unit FTX US, and affiliate Alameda Research, had voluntarily filed for Chapter 11 bankruptcy through which a company may continue to operate, though creditors and the court must agree a debt repayment plan.

On the same day, Bankman-Fried resigned as chief executive officer of FTX. John J. Ray III will replace him as CEO, and Stephen Neal will become the new chairman, he added.

New Huo Tech entered into an agreement with Li Lin, the company’s controlling shareholder and non-executive director, by which Li will provide New Huo Tech with additional unsecured shareholding financing of up to USD14 million, it noted.

Shareholder financing does not bear interest, and New Huo Tech will use the money to pay client assets and liabilities arising from the event when necessary and continue to take all appropriate measures to safeguard user interests, the firm added.

New Huo Tech had first-half revenue of about HKD352 million (USD44.9 million), up 34 percent from a year earlier. But it turned a HKD54.1 million profit into a HKD48.8 million loss in the period.

Editor: Futura Costaglione