Justin Sun Addresses Huobi Exchange’s Bankruptcy Rumors
- There have been rumors that the cryptocurrency exchange is having financial difficulties.
- The top management of the exchange was allegedly detained in China on August 4.
Fears of bankruptcy and reports that Chinese authorities are investigating Huobi’s management led to $64 million in withdrawals during the weekend. Total value locked (TVL) on the exchange fell to $2.5 billion from $3.09 billion the previous month as speculations persisted.
The top management of the exchange was allegedly detained in China on August 4. The speculation was that this was due to a probe into the exchange’s connections with betting websites.
Financial Difficulties Rumors
The Chinese government seems to be tightening its regulations on crypto trading platforms. One of the exchange’s senior executives just quit, and it’s unclear whether this had anything to do with the ongoing investigations in China. Huobi’s social media head, however, has denied the claims, saying that the exchange is “currently doing well.”
There have been rumors that the cryptocurrency exchange is having financial difficulties. Adam Cochran, an executive in the fintech industry and an angel investor, noticed discrepancies in the exchange’s Tether (USDT) balances.
Huobi’s newest ‘Merkle Tree Audit’ says they have $630 million in USDT holdings, however on-chain data shows they have less than $90 million in assets as of August 5. According to Cochran, this indicates that Huobi may be insolvent and unable to pay its debts. The chief of the Huobi Exchange, Justin Sun, has addressed the claims that the platform is going bankrupt.
On Twitter, Sun recently said:
“Ignore FUD, keep building! #TRON and #Huobi will thrive through continuous development. Trust in our vision and community efforts for a stronger future. Perseverance guarantees success!”
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Read more: https://thenewscrypto.com/exchange-news-justin-sun-addresses-huobi-exchanges-bankruptcy-rumors/
Text source: TheNewsCrypto – Blockchain & Cryptocurrency News M
