USDD

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    <p><a rel="noopener noreferrer nofollow" title="HTX" href="https://thebittimes.com/tag/htx.html">HTX</a>, formerly Huobi, offers a ‘<a rel="noopener noreferrer nofollow" title="proof-" href="https://thebittimes.com/tag/proof.html">proof-</a>of-<a rel="noopener noreferrer nofollow" title="reserve" href="https://thebittimes.com/tag/reserve.html">reserve</a>s’ process meant to help assure users that it has the assets they need to be a solvent exchange. At one point, it even claimed that a third party would verify the <a rel="noopener noreferrer nofollow" title="proof-" href="https://thebittimes.com/tag/proof.html">proof-</a>of-<a rel="noopener noreferrer nofollow" title="reserve" href="https://thebittimes.com/tag/reserve.html">reserve</a>s process before eventually admitting, “After the release of the relevant announcement, we have connected with a third party, but then no third party can do this. So there are no third parties.”</p>
    <p>Unfortunately, and perhaps contributing to the lack of third parties, it appears that HTX has been including ‘collateral’ for the USDD algorithmic stablecoin in its reports.</p>
    <p><a rel="noopener noreferrer nofollow" title="HTX" href="https://thebittimes.com/tag/htx.html">HTX</a> provides a software tool that intends to make it possible for third parties to verify that <a rel="noopener noreferrer nofollow" title="HTX" href="https://thebittimes.com/tag/htx.html">HTX</a> has the assets it’s supposed to. The ‘snapshot’ was most recently updated for the beginning of December and included the Tron address, TZ1SsapyhKNWaVLca6P2qgVzkHTdk6nkXa.&nbsp;</p>
    <figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter">
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       <p lang="en" dir="ltr">friendly reminder to stay FAR AWAY from anything JustinSun related. There's tons of redflags and in the case of USDD he is FACTUALY commingling funds: TRX address TZ1… is both in the USDD backing and the Huobi reserves. https://t.co/kYOyycgos5 pic.twitter.com/8gSqn8SIOg</p>— Symbio (@NoCryptFish) January 10, 2024
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    <p>This address is also listed as one of the “<a rel="noopener noreferrer nofollow" title="reserve" href="https://thebittimes.com/tag/reserve.html">reserve</a> accounts managed by the TRON DAO Reserve” for the <a rel="noopener noreferrer nofollow" title="USDD" href="https://thebittimes.com/tag/usdd.html">USDD</a> algorithmic stablecoin. This suggests that the assets in this address are being <strong>simultaneously counted as assets for <a rel="noopener noreferrer nofollow" title="HTX" href="https://thebittimes.com/tag/htx.html">HTX</a> and collateral for <a rel="noopener noreferrer nofollow" title="USDD" href="https://thebittimes.com/tag/usdd.html">USDD</a></strong>.</p>
    <p>Further complicating this discussion is the claim that this account is “managed by the TRON DAO Reserve.” As we review the governance module for USDD, we can see only a single proposal that has ever been voted on, which doesn’t seem to provide for the collateral controlled by this DAO to be deposited at HTX.</p>
    <h2 class="wp-block-heading" id="h-stusdt">stUSDT&nbsp;</h2>
    <p>Other problems in the Sun ecosystem manifest in the HTX proof-of-reserves, including the incredible quantity of stUSDT (staked tethers) it controls.&nbsp;</p>
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       Justin Sun-advised Huobi controls 85% of ‘decentralized’ stUSDT
      </blockquote><iframe class="wp-embedded-content" sandbox="allow-scripts" security="restricted" style="position: absolute; clip: rect(1px, 1px, 1px, 1px);" title="“Justin Sun-advised Huobi controls 85% of ‘decentralized’ stUSDT” — Protos" src="https://protos.com/justin-sun-advised-huobi-controls-85-of-decentralized-stusdt/embed/#?secret=OZCLwMq4oQ#?secret=OBfF4UJPPt" data-secret="OBfF4UJPPt" width="500" height="282" frameborder="0" marginwidth="0" marginheight="0" scrolling="no"></iframe>
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    <p>The vast majority of this Sun-controlled project ends up at HTX, with the remainder ending up in other addresses believed to be controlled by Sun. Furthermore, this raises additional concerns because approximately $402 million in stUSDT is included in the total balance of $475 million USDT on the platform, suggesting nearly 85% of all tethers on the platform are in this product.</p>
    <p>The HTX Proof-of-Reserves suggests HTX holds approximately <strong>$475 million in assets against $470 million</strong> in user assets.</p>
    <h2 class="wp-block-heading" id="h-wbtc">WBTC</h2>
    <p>Another problem in the HTX Proof-of-Reserves is the presence of WBTC on Tron in the proof-of-reserves. This product is offered by Sun-owned Poloniex; however, Poloniex previously told Protos it couldn’t disclose the Bitcoin addresses that hold the collateral for this token to us.</p>
    <p>Nearly 45% of all Bitcoin on HTX is in this ‘wrapped’ form. Protos is unable to verify the backing. Currently, the proof-of-reserves suggests that HTX holds 21,842 BTC against 21,820 in user assets.</p>
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       Poloniex proof-of-reserves and WBTC backing missing
      </blockquote><iframe class="wp-embedded-content" sandbox="allow-scripts" security="restricted" style="position: absolute; clip: rect(1px, 1px, 1px, 1px);" title="“Poloniex proof-of-reserves and WBTC backing missing” — Protos" src="https://protos.com/poloniex-proof-of-reserves-and-wbtc-backing-missing/embed/#?secret=Alzfw3Uh36#?secret=USe431O447" data-secret="USe431O447" width="500" height="282" frameborder="0" marginwidth="0" marginheight="0" scrolling="no"></iframe>
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    <p><em>Read more: HTX hacked week after Poloniex — now Justin Sun only posts as AI</em></p>
    <p>These various Sun-connected products make up a significant portion of HTX’s reserves but raise serious questions about the quality and quantity of assets held at this exchange. These concerns are only heightened <strong>following a recent hack</strong>.</p>
    <p>Protos has reached out to HTX to clarify why these assets are included in the proof-of-reserves.</p>
    <p><em>Got a tip? Send us an email or ProtonMail. For more informed news, follow us on&nbsp;X,&nbsp;</em><em>Instagram</em><em>,&nbsp;</em><em>Bluesky</em><em>, and&nbsp;</em><em>Google News</em><em>, or subscribe to our&nbsp;</em><em>YouTube</em><em>&nbsp;channel.</em></p>
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<p>Source: <a rel="noopener noreferrer nofollow" target="_blank" href="https://thebittimes.com/justin-sun-stored-usdd-reserves-at-htx-for-proof-of-reserves-tbt76326.html">https://thebittimes.com/justin-sun-stored-usdd-reserves-at-htx-for-proof-of-reserves-tbt76326.html</a></p>

Justin Sun stored USDD reserves at HTX for proof-of-reserves

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