Ethereum

Bulk

Notable

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Analyst Adam Cochran is <a href="https://twitter.com/adamscochran/status/1687959096316542976" rel="noopener noreferrer nofollow">stoking speculation</a> about the financial stability of cryptocurrency exchange Huobi, suggesting that the firm may be insolvent due to disparities in its Tether (USDT) holdings. 
Cochran's examination of Huobi's "Merkle Tree Audit" indicates only $90 million is held in Huobi's accounts while the exchange's users believe they own $631 million worth of USDT. The discrepancy is concerning as the Merkle Tree Audit stopped updating last month. 
According to Cochran, the shortfall in Huobi's USDT assets may be linked to actions taken by Justin Sun, a prominent figure in the cryptocurrency world and founder of the Tron network. 
Sun is accused of using Huobi users' assets to support his decentralized finance (DeFi) applications, thereby inflating the yield to attract more deposits into Huobi. 
Additionally, Cochran alleges that user <a href="https://u.today/ethereum-eth-update-on-status-of-upcoming-deneb-upgrade" rel="noopener noreferrer nofollow">Ethereum (ETH)</a> balances have been converted into stETH by Sun, with only half of the total 141,000 ETH believed to be held by Huobi users actually present in Sun's accounts. 
Furthermore, he suggests that fellow cryptocurrency exchange Binance might be selling its Tether in bulk as a strategic move against Huobi. 
According to the analyst, <a href="https://u.today/shiba-inu-shib-gets-green-light-from-binance-as-collateral-asset-for-flexible-loans" rel="noopener noreferrer nofollow">Binance</a> seeks to diminish USDT's dominance by promoting other stablecoins they can control and profit from. Another reason, Cochran posits, is that Binance might be aware of Sun's over-claimed USDT holdings and aims to protect itself from a potential mass sell-off from Huobi users. 
He emphasizes that the cryptocurrency exchange's financial obligations appear far from balanced. Even accounting for the funds Sun has allegedly transferred from Huobi to his DeFi apps, it seems that only about half of the total obligations for Huobi are accounted for. Cochran accuses Sun of treating Huobi like a "personal piggy bank." 
Cochran suggests that Binance's aggressive USDT sell-off could be a risk mitigation strategy, as it has learned of an investigation into Huobi and Tron employees. These allegations paint a worrying picture for Huobi's financial health, adding fuel to the rumors of the company's possible insolvency.

Huobi Insolvency Rumors Linked to Bulk USDT Selling by Binance: Analyst

U_Today

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