Huobi cryptocurrency exchange has sparked pressure from members of the cryptocurrency industry, many of whom are now speculating that the exchange may be considering a bankruptcy scenario. A number of factors have contributed to rumors that the exchange is in serious financial trouble. This includes outflows worth millions of dollars from the exchange in recent days, resulting in a significant drop in the exchange’s total value locked (TVL) status.
Over the weekend, more than $64 million (approximately Rs. 530 crore) It is said Recorded in the outflow of Huobi.
This brought Huobi’s TVL down to $2.5 billion (roughly Rs 206.83 billion) from $3.9 billion (roughly Rs 322.65 crore) recorded in July, the data showed. De Philama on Monday.
Around August 4, rumors surfaced that the exchange’s leadership was being questioned in China, triggering massive outflows from Huobi.Chinese authorities It is said Huobi and TRON executives were arrested, accusing the cryptocurrency projects of engaging in gambling activities.
According to cryptocurrency analyst Adam Cochran, China is investigating the operations of Huobi and Tron.
Wang Hui, head of human resources at Huobi, and Wang Huanye, head of server operations at the company, are facing investigations by Chinese police.
Cochran published a detailed post on X (formerly Twitter) highlighting the current state of Huobi’s business.
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So why is Tether being dumped?
Huobi may go bankrupt.
– Binance began to sell USDT in batches.
– We found out that Huobi executives (and Tron personnel were questioned by the police)
– This is not long after Sun launched stUSDT
– The balance of Huobi has changed strangely in the last month pic.twitter.com/f3HViYS93a— Adam Cochran (adamscochran.eth) (@adamscochran) August 5, 2023
The Huobi social media head denied the rumours, but her claims were again challenged by Cochrane, who claimed that Tron executives had confirmed the investigation rumours.
A senior executive on the Tron team has confirmed this directly to me.
They confirmed that team members are under investigation for actions related to Huobi.
— Adam Cochran (adamscochran.eth) (@adamscochran) August 6, 2023
But Huobi’s own “Merkle Tree Audit” still lists Huobi users holding $630 million in USDT, with a wallet balance of $631 (roughly Rs. 52.2 billion) in USDT. Of course, this one stopped updating last month.so user think Their balance on Huobi is $631 million (roughly Rs 5,220 crore), but only $90 million (roughly Rs 744 crore) is there,” Cochran noted in his post.
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When Binance heard that Huobi/TRON employees were under investigation for Huobi’s actions, they started selling 3CRV USDT to DAI to reduce risk.
Because Huobi is already seriously insolvent.
— Adam Cochran (adamscochran.eth) (@adamscochran) August 5, 2023
Huobi has yet to comment on the matter.
The reported insolvency status of Huobi has weighed on the cryptocurrency industry as the last time the cryptocurrency exchange (FTX) collapsed, resulting in losses of more than $200 billion (roughly Rs 1,654,572 crore), shook the global crypto community .
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