Huobi dismisses plunging stablecoin reserves as ‘FUD’

Exchange spokesperson refuted claims that any team members have been detained by Chinese authorities

article-image

Grey82/Shutterstock, modified by Blockworks

share

Following speculation that Chinese officials detained some Huobi executives, the crypto exchange’s stablecoin reserves have dwindled as much as 34% in the past week.

Local Chinese media reported that law enforcement detained at least three Huobi executives. Allegedly, some employees were sent an urgent notification advising them to depart the country at the earliest.

Adam Cochran, a partner at Cinneamhain Ventures, relayed information he alleges came directly from a high-ranking executive at Tron, stating that team members were facing a criminal probe tied to activities associated with Huobi.

Loading Tweet..

DefiLlama data indicates that between Aug. 1 and 7, Huobi’s USDT balances saw a significant decrease of $40 million. As of Monday, the total value locked in Huobi was at $2.4 billion, marking a decline from its $3 billion position at the beginning of the year.

Meanwhile, Nansen reported that Huobi’s net outflows, excluding bitcoin, amounted to $32.9 million in the past 24 hours, a figure representing 1% of the total assets currently held by the exchange.

Loading Tweet..

A Huobi spokesperson denied any allegations of team member arrests, and said the company contacted “all original sources of misinformation” requesting them to retract or correct their statements.

Additionally, they dismissed claims of significant outflows, asserting that the data provided by DefiLlama was not accurate.

“Please check out Nansen, which has the most updated and accurate real-time data, the relevant team is working with DefiLlama to update their data tracking,” they told Blockworks via email.

Separately on Monday, Justin Sun, a member of Huobi’s global advisory board, called on observers to disregard the FUD.

“#TRON and #Huobi will thrive through continuous development,” he wrote. “Trust in our vision and community efforts for a stronger future.”


Don’t miss the next big story – join our free daily newsletter.

Tags

Upcoming Events

Hilton Metropole | 225 Edgware Rd, London

Mon - Wed, March 18 - 20, 2024

Crypto’s premier institutional conference returns to London in March 2024. The DAS: London Experience: Attend expert-led panel discussions and fireside chats Hear the latest developments regarding the crypto and digital asset regulatory environment directly from policymakers and experts.

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

Top Icon.png

Research

Osmosis thrived in H2 2023 on the back of increased DeFi activity deriving from recently launched Cosmos-related projects and better market conditions. With new value accrual mechanisms for the native token, Osmosis is well-positioned to continue its strong performance in 2024.

/

article-image

Do Kwon may miss the start of the March 25 trial in the SEC’s case against the former executive and Terraform Labs

article-image

Riot Platforms bought 31,500 more mining machines while CleanSpark has begun operating in Mississippi

article-image

Dencun was activated on all testnets, a blog post Tuesday said

article-image

Hut 8 also announced it broke ground on a Texas mining site

article-image

Uniswap aims to become a “complete platform for swapping” following its latest product releases

article-image

Continued demand for bitcoin ETFs coupled with greater demand for bitcoin from exchanges is contributing to price moves, analysts say