Huobi Blames ‘Unauthorized Access Attempt’ for Twitter Outage

Hong Kong Monetary Authority as well as the territory’s Securities and Futures Commission not commenting on existence of investigation into Huobi.

article-image

Source: Shutterstock

share

key takeaways

  • Huobi’s Twitter account appeared to vanish earlier this week, which led many to speculate that the exchanges days were numbered
  • While the exchange made changes to derivatives rules for China-based traders, it says its business as usual

Huobi’s Twitter account is back online after vanishing earlier in the week, and the exchange says that “everything is back to normal.”

“Earlier there was an unauthorized attempt on our account, and it was frozen to ensure user safety,” the exchange wrote in a Twitter update. “Currently there are many rumors floating out there in the world of crypto. Huobi assures that we are operating under fully legal and compliant standards to best protect users and your assets.”

When the account disappeared it led many to think that Seychelles-incorporated, but Hong Kong-listed Huobi had been caught in the crosshairs of the territory’s regulators.

Hong Kong, in theory an autonomous territory, has been cracking down on crypto alongside Beijing. Hong Kong restricts exchanges to professional investors only — Huobi opens its doors to everyone — and while the firm is Seychelles registered, it is publicly listed on the Hong Kong exchange. 

A source at an Asia-based trading and research firm that spoke to Blockworks said that regulators in China have taken concern with the amount of leverage offered to users. New users that onboard onto the platform aren’t able to trade leveraged derivatives, and existing users can only use a maximum of 5x leverage. 

The source also said that the volatility of the market has put some stress on the exchange, and there have been issues with withdrawals. He explained that as bitcoin is “range bound” — a phenomenon where the asset’s price bounces between a specific high price and a low price finding strong resistance on both sides — this had to be done to mitigate internal risk.  

Both Hong Kong’s Securities and Futures Commission, its markets regulator, and the Hong Kong Monetary Authority, its central bank, declined to comment on inquiries about an ongoing investigation into Huobi. Neither authority has publicly announced that they are pursuing enforcement actions against the exchange either. 

Earlier this month, securities regulators in Thailand, as part of the country’s broader crackdown on crypto offerings with “no clear objectives or substance”, ordered Huobi to cease operations until it cleans up its organizational structure and reconfigures its offerings to become compliant with local regulatory standards.

Huobi, for its part, is planning to re-enter the market with a different name and product offering later in the year and has given its current clients until August 31 to withdraw all assets from its Thai platform. 

Tags

Upcoming Events

Salt Lake City, UT

MON - TUES, OCT. 7 - 8, 2023

Blockworks and Bankless in collaboration with buidlbox are excited to announce the second installment of the Permissionless Hackathon – taking place October 7-8 in Salt Lake City, Utah. We’ve partnered with buidlbox to bring together the brightest minds in crypto for […]

Salt Lake City, UT

WED - FRI, OCTOBER 9 - 11, 2024

Pack your bags, anon — we’re heading west! Join us in the beautiful Salt Lake City for the third installment of Permissionless. Come for the alpha, stay for the fresh air. Permissionless III promises unforgettable panels, killer networking opportunities, and mountains […]

recent research

Research Report Cover Vertex.jpg

Research

The proliferation of new perp DEXs has led to fragmented liquidity across various DEXs and chains. Vertex, known for its vertically-integrated DEX that includes spot, perpetual, and integrated money markets, is now tackling cross-chain liquidity fragmentation through horizontal integration with the launch of new Edge instances. Vertex's integrated offerings and cross-margined account structure amplify the benefits of new instances: native cross-chain spot trading, optimized cross-chain basis trading, consistent interest rates, reduced bridging friction, and more.

article-image

Partnering with EtherFi and Angle, the fully on-chain perp DEX features bespoke collateral

article-image

Sponsored

Gavin Wood introduced the next evolutionary step for the Polkadot network: the Join-Accumulate Machine, or JAM

article-image

The side events were the places to be at Consensus 2024, according to attendees

article-image

Also, who’s come out swinging in the spot ether ETF fee war — and who could undercut them

article-image

I know it is not in their nature, but US regulators could learn a lot by researching the digital asset frameworks that overseas regulators have already gotten right

article-image

Also, the ETF hype train can count out at least one member