A spokesperson for Huobi exchange has denied reports that several executives were arrested in China as exchange outflows increased over the weekend amid insolvency rumours.
Financial media in Hong Kong reported that several executives from the exchange were taken into custody by Chinese police amid rumours of possible insolvency facing the exchange.
Justin telling people to not worry about Huobi, meanwhile at the start of the claims of employees being investigated, he withdraw $60M from Huobi and started sending his assets to a Binance deposit wallet🤣
He wants you to have faith, but he doesn’t. pic.twitter.com/dNYT13sw1y
— Adam Cochran (adamscochran.eth) (@adamscochran) August 7, 2023
Huobi saw over $60 million worth of outflows over the weekend, which brought the exchange’s Total Value Locked (TVL) below $2.5 billion at the time of writing. Stablecoin balances dipped 33% in 7 days, with traders withdrawing $49 million in stablecoins, per Nansen data.
The abnormally high outflows came amidst reported police investigations into whether the firm provided payments and settlements via gambling programs. Shortly after, rumours about Huobi stakeholder and Tron founder Justin Sun started circling. Justin Sun has since denied the rumours, though the possibility of ‘another FTX’ in the making can’t be ruled out. Huobi released an article in response to news about its potential insolvency, but it didn’t address the unusual withdrawal activity.
How to spread a rumor:
1. Share a document with Chinese signs.
2. Say whatever you want.— H.E. Justin Sun å™å®‡æ™¨ (@justinsuntron) August 7, 2023
Meanwhile, data from DeFiLlama showed that Huobi has a balance of $2.41 billion. The balance is down from $3.1 billion at the start of the year. On-chain data indicates that some of the exchange’s biggest holdings are in the form of tokens connected to Justin Sun’s numerous companies and protocols.
Per the data, Huobi’s largest holdings are in Bitcoin, Ethereum, Tron and XRP, with Tron taking up 26.5% of the exchanges holdings, and HT being 20.32% of holdings.
Huobi has roughly $1 billion in liquid assets, including $886.92 million in bitcoin, $48.27 million in USDT, and $5.41 million in USDC, per DeFi Llama data.
The exchange also has $119.4 million in stETH and $21.8 million in wETH.
Last month, finance data analyst Willy Woo, underlined an almost 94% loss in Huobi’s Bitcoin reserves, which saw the platform’s Bitcoin holdings nosedive from 220,000 BTC to just 26,000 Bitcoin at the time.
Huobi’s HT token exchanges hands at $2.63 at the time of writing.
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