{"id":22743,"date":"2023-08-07T10:25:37","date_gmt":"2023-08-07T10:25:37","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/justin-sun-addresses-huobis-insolvency-concerns-calls-it-a-fud\/"},"modified":"2023-08-07T10:25:37","modified_gmt":"2023-08-07T10:25:37","slug":"justin-sun-addresses-huobis-insolvency-concerns-calls-it-a-fud","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/justin-sun-addresses-huobis-insolvency-concerns-calls-it-a-fud\/","title":{"rendered":"Justin Sun addresses Huobi&#8217;s insolvency concerns, calls it a FUD"},"content":{"rendered":"<p><b>(Originally posted on : CoinJournal: Latest Bitcoin, Ethereum &amp; Crypto News )<\/b><br \/>\n<\/p>\n<div>\n<div class=\"post-article-image  -mt-24  mb-8  lg:-mt-32  rounded  overflow-hidden\">\n<picture><source srcset=\"https:\/\/coinjournal.net\/wp-content\/uploads\/imagecache\/2023\/08\/1691403096653-372ab05b-b27c-4f05-a53a-656e2dbe882a-smartcrop-750x375.webp\" type=\"image\/webp\" media=\"(min-width: 750px)\"\/><source srcset=\"https:\/\/coinjournal.net\/wp-content\/uploads\/imagecache\/2023\/08\/1691403096653-372ab05b-b27c-4f05-a53a-656e2dbe882a-smartcrop-363x181.webp\" type=\"image\/webp\"\/><source srcset=\"https:\/\/coinjournal.net\/wp-content\/uploads\/imagecache\/2023\/08\/1691403096653-372ab05b-b27c-4f05-a53a-656e2dbe882a-smartcrop-750x375.jpg\" type=\"image\/jpeg\" media=\"(min-width: 750px)\"\/><source srcset=\"https:\/\/coinjournal.net\/wp-content\/uploads\/imagecache\/2023\/08\/1691403096653-372ab05b-b27c-4f05-a53a-656e2dbe882a-smartcrop-363x181.jpg\" type=\"image\/jpeg\"\/>\n<\/picture>                    <\/div>\n<ul>\n<li>Huobi saw a record $64 million in outflows over the weekend.<\/li>\n<li>The Outflows followed reports that the exchange\u2019s executives had been arrested in China.<\/li>\n<li>An Angel investor has also pointed to inconsistencies in Huobi\u2019s reserves.<\/li>\n<\/ul>\n<p>Huobi customers withdrew $64 million over the weekend due to worries about the cryptocurrency exchange company going bankrupt and rumours that Chinese authorities were looking into their management. As speculation persisted, the total value locked (TVL) on the exchange decreased to $2.5 billion from $3.09 billion over the past month.<\/p>\n<p>All these started on August 4 after Chinese authorities allegedly detained Huobi\u2019s top executives. It was reported that the arrests were the result of an investigation into the exchange\u2019s ties to betting websites.<\/p>\n<h2>Huobi woes<\/h2>\n<p>The rules governing cryptocurrency trading platforms appear to be getting stricter in China. Also, uncertainty exists regarding whether the recent resignation of one of the exchange\u2019s senior executives was related to the ongoing investigations in China.<\/p>\n<p>However, Huobi\u2019s social media manager refuted the allegations and stated that the exchange is \u201ccurrently doing well.\u201d<\/p>\n<p>But according to angel investor and fintech executive Adam Cochran, Huobi is allegedly having financial issues. Adam Cochran has specifically pointed to some inconsistencies in the exchange\u2019s <a href=\"https:\/\/coinjournal.net\/tether\/what-is-tether\/\">Tether (USDT)<\/a> balances.<\/p>\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\">11\/16<\/p>\n<p>So users *think* they have balances of $631M in Huobi, but there is only $90M there.<\/p>\n<p>The rest Justin Sun is using to prop up his other defi apps, and paying a yield on it to get users to deposit more into Huobi.<\/p>\n<p>\u2014 Adam Cochran (adamscochran.eth) (@adamscochran) <a href=\"https:\/\/twitter.com\/adamscochran\/status\/1687959127048298496?ref_src=twsrc%5Etfw\">August 5, 2023<\/a><\/p>\n<\/blockquote>\n<p>Huobi\u2019s most recent \u201cMerkle Tree Audit\u201d claims that they hold $630 million in USDT, but on-chain data reveals that as of August 5, they had less than $90 million in assets. This suggests that Huobi might not be able to pay its debts, according to Cochran.<\/p>\n<h2>Justin Sun\u2019s response<\/h2>\n<p>Justin Sun, the CEO of the Huobi Exchange, has responded to the allegations that the crypto exchange is about to fail.<\/p>\n<p>Huobi in a <a href=\"https:\/\/twitter.com\/HuobiGlobal\/status\/1688459973141966848?s=20\">tweet<\/a> has also termed the circulating information as a FUD. It said:<\/p>\n<p><em>The past two days have seen people getting concerned due to the spreading FUD. We want to take a second to respond in the open, with absolute sincerity and clarity<\/em><\/p>\n<div class=\"post-meta\">\n<hr class=\"mb-6\"\/>\n<h6 class=\"text-3xl  mb-4  text-green-300\">Share this article<\/h6>\n<hr class=\"mb-6\"\/>\n<h6 class=\"text-3xl  mb-4  text-green-300\">Categories<\/h6>\n<hr class=\"mb-6\"\/>\n<h6 class=\"text-3xl  mb-4  text-green-300\">Tags<\/h6>\n<\/p><\/div>\n<\/p><\/div>\n<p><script async src=\"\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><br \/>\n<br \/><a href=\"https:\/\/coinjournal.net\/news\/justin-sun-addresses-huobis-insolvency-concerns-calls-it-a-fud\/\">Source link <\/a><br \/>\n<br \/><\/p>\n","protected":false},"excerpt":{"rendered":"<p>(Originally posted on : CoinJournal: Latest Bitcoin, Ethereum &amp; Crypto News ) Huobi saw a record $64 million in outflows over the weekend. The Outflows followed reports that the exchange\u2019s executives had been arrested in China. An Angel investor has also pointed to inconsistencies in Huobi\u2019s reserves. Huobi customers withdrew $64 million over the weekend [&hellip;]<\/p>\n","protected":false},"author":7,"featured_media":22744,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0},"categories":[35],"tags":[],"_links":{"self":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/22743"}],"collection":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/users\/7"}],"replies":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/comments?post=22743"}],"version-history":[{"count":0,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/22743\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media\/22744"}],"wp:attachment":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media?parent=22743"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/categories?post=22743"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/tags?post=22743"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}