The cryptocurrency market was thrown into turmoil as rumors of insolvency plagued Huobi, one of the leading crypto exchanges.
Between August 5 and 6, Information from DeFi Llama reveals that Huobi, a cryptocurrency exchange, experienced approximately $60 million in withdrawals over the weekend, pushing the exchange’s Total Value Locked (TVL) to $2.5 billion as of this writing.
With substantial outflows reported, concerns over the exchange’s financial stability ran rampant. In a puzzling twist, Huobi’s community manager attempted to dismiss the rumors, only to be contradicted by crypto analyst Adam Cochran.
“”His Excellency” trying to instill hope and confidence in Huboi… with the dumbest message possible.
Meanwhile another $20M~ USDT gone from Huobi which now has $46M against a prior reported $630M in USDT liabilities.”
As uncertainty looms over Huobi, investors have been left scrambling to make sense of the situation and protect their assets.
The larger-than-average outflows came in response to allegations that key exchange executives had been detained by Chinese police as part of an inquiry into whether the company offered cryptocurrency payments and settlements for gambling programmes.
Justin Sun Unveils his Opinion Amid Huobi’s Financial Crisis
Justin Sun, the head of Huobi Exchange, has addressed the claims that the exchange is bankrupt. Sun stated recently on Twitter: “Ignore FUD, keep creating! Continuous improvement will enable #TRON and #Huobi to prosper. For a better future, have faith in our vision and the efforts of the community. Success is guaranteed by perseverance.”
Huobi, on the other hand, has been closely monitoring all the cryptocurrency-friendly events in Hong Kong, which recently unveiled a framework for the use of cryptocurrencies by businesses operating in the city.
Huobi also applied for a crypto trading license in Hong Kong earlier this year, in February 2023.