News - Huobi bankrupt? Arrests? More and more rumors emerge
One of the largest exchanges faces fearful rumors: Arrests, insolvency and a mass exodus. What's all this about?
Huobi is said to be in deep crisis. Arrests, insolvency, massive outflow from the exchange: Several horror stories have surfaced in recent days about the exchange owned by Justin Sun, the founder of Tron. Executives of the exchange were reportedly arrested in China, according to press and social media reports since Aug. 4. Representatives of Huobi described this as "fake news" to Cointelegraph. According to Adam Cochran, a well-known crypto analyst, Huobi has much less USDT reserves than reported: $90 million instead of $631 million. There is also a lack of ETH holdings. His conclusion: "Huobi is completely insolvent".
16/16— Adam Cochran (adamscochran.eth) (@adamscochran) August 5, 2023
When Binance heard that Huobi/Tron employees were being investigated in relation to actions at Huobi, they started slamming the 3CRV USDT sell into DAI to mitigate their risk.
Because Huobi is deeply insolvent.
In fact, according to data from DeFiLama, Huobi only had US$64 million in USDT yesterday. As of today, it has 273 million US dollars again (to check it yourself: click on Assets, then Tokens in USD, select USDT only). From Sunday to Monday, August 7, 2023, just under US$64 million was withdrawn from the exchange.
Huobi is one of the largest exchanges in the world with a daily trading volume of about one billion US dollars. According to DeFiLama, its Total Value is Locked, currently US$3.1 billion.