USDC

Coin

Crypto exchange Huobi experienced significant outflows totaling $64 million between August 5 and 6. These outflows occurred amidst persistent rumors questioning the exchange’s financial stability and suggesting that Chinese authorities were conducting investigations into its executives.As a result of the weekend outflows, the exchange’s total value locked (TVL) dropped to $2.5 billion, down from $3.09 billion recorded on July 6.On August 4, rumors began circulating that Huobi’s leadership had been arrested in China as part of an alleged investigation related to the exchange’s involvement with gambling platforms.In response to these claims, a Huobi spokesperson firmly denied them, labeling the rumors as fake news. It is important to note that these rumors have surfaced in the context of Chinese authorities reportedly intensifying their control over cryptocurrency exchanges within mainland China.Additionally, Cointelegraph learned that at least one C-level executive has left Huobi in recent weeks, although it remains uncertain whether this departure is linked to the ongoing investigations in China.On the social media platform X (formerly Twitter), Huobi’s head of social media refuted the rumors, affirming that they are untrue and asserting that the exchange is currently operating smoothly.The crypto exchange is reportedly encountering financial problems. A fintech executive and angel investor named Adam Cochran suggested through a series of posts that the company might be unable to meet its financial obligations due to inconsistencies in its Tether (USDT) holdings.Cochran used on-chain data from DefiLlama to highlight that Huobi had less than $90 million in assets on August 5, combining both USDT and USD Coin (USDC) tickers, whereas Huobi’s latest “Merkle Tree Audit” stated that they had $630 million in USDT held with a wallet balance of $631 million. Cochran claims that Huobi is severely insolvent.According to DefiLlama data on August 6, Huobi’s wallets only held $72 million in USDT and USDC combined.Huobi is also facing challenges in other jurisdictions, as the Malaysian securities regulator took enforcement action, leading to the exchange’s closure of operations in the country in May.The post <a rel="noopener noreferrer nofollow" href="https://www.unlock-bc.com/106038/huobis-total-value-locked-plummets-to-2-5b-amidst-insolvency-allegations-and-chinese-investigations/">Huobi’s Total Value Locked Plummets to $2.5B Amidst Insolvency Allegations and Chinese Investigations</a> appeared first on <a rel="noopener noreferrer nofollow" href="https://www.unlock-bc.com">UNLOCK Blockchain</a>.

Huobi’s Total Value Locked Plummets to $2.5B Amidst Insolvency Allegations and Chinese Investigations

UNLOCK_ENG

Other articles published on Aug 7, 2023

Bertrand Perez: “We are thrilled by the openness to engagement by regulators in jurisdictions in ...

PayPal Makes A Game-Changing Leap Into Crypto, Launches PYUSD Stablecoin Powered by Paxos Trust

Bitcoin Stuck at $29,000-Here’s When You Can Expect a Bullish Breakout beyond $30,000

Worldcoin Mengalami Lonjakan Permintaan Global Di Tengah Kritik dan Peninjauan Regulasi

The Curve Reentrancy Exploit Stole $73.5 Million in Ethereum Cryptocurrency!

The Pivotal Role of Artificial Intelligence in Shaping the VR Metaverse and Blockchain Technologies

Join our free newsletter for daily crypto updates!