In recent days, the Huobi cryptocurrency exchange has faced a flurry of concerns and speculations regarding its financial stability. Rumors of insolvency emerged after the exchange experienced significant outflows, totaling a staggering $64 million over the past weekend, resulting in a decline in the total value locked (TVL) from $3 billion to $2.5 billion in just a month, as reported by DeFiLlama.
Adam Cochran, a prominent fintech executive and crypto Twitter analyst, raised eyebrows with a series of statements connecting the sale of Tether (USDT) by global crypto heavyweight Binance to alleged financial instability at Huobi. Cochran suggested that Tether’s sale might be related to Huobi’s financial troubles, spurring further questions about the exchange’s health.
Cochran’s claims gained momentum when he mentioned “weird balance shifts at Huobi” and insinuated that the missing funds were potentially being used to support the yields of Tron, a blockchain platform founded by crypto entrepreneur Justin Sun, and other DeFi apps associated with Sun. Cochran even provided a list of names of people he claimed were detained, including high-level personnel from Huobi and Tron, but later deleted the tweet.
Huobi Debunks Rumors
The Huobi team has vehemently denied the allegations of insolvency and any police involvement. In an official blog post, Huobi’s representatives reassured users that the platform is operating as usual and that the reports of police inquiries are nothing more than rumors. In their open response, Huobi emphasized their commitment to progress and improvement since the withdrawal of Mainland Chinese users in late 2021.
They acknowledge that there is room for improvement but maintain that they have made visible strides on multiple operational fronts, striving to return to the top ranks in the industry. Huobi expressed gratitude for the unwavering support of their users, who continue to stand by the exchange. Addressing the persistent spread of Fear, Uncertainty, and Doubt (FUD) in the crypto community, Huobi urged people to focus on making the crypto space better for everyone and to reject senseless accusations and defamations.
The exchange emphasized that they believe in the greater good and are determined to stand firm in the face of negativity. Despite the challenges and rumors surrounding Huobi, the exchange remains active and continues to conduct its 7th round of Primevote, a vote-to-list campaign for the community. Huobi pledged to let the voice of its users be heard, valuing their opinions and striving to offer a fun and involving experience to all its users.
Huobi also revealed plans to celebrate its 10th birthday, marking a decade of service to millions of community members. The exchange expressed pride in supporting Web3 and the next stage of growth in internet technology. They invited their users to join the celebration, set to take place in Singapore on September 13th.
As the crypto community awaits further developments and clarifications, it is essential to approach such news with caution and verify the information from credible sources. Investors and users should exercise their own judgment and stay informed while the situation unfolds.
