Huobi Faced an Outflow of Funds.
07 Aug 2023, 15:50
Huobi Faced an Outflow of Funds
Cryptocurrency exchange Huobi met massive outflow of funds from August 5 to August 6 due to rumors of bankruptcy. As a result, TVL decreased by almost $54 million.
Cryptocurrency analyst Adam Cochran wrote a post on the X network. It stated that Chinese police questioned Huobi and Tron executives. The analyst conducted his own audit of the exchanges and found out that users' balances totaled about $630 million, while he estimated the platform's reserves at only $90 million. Cochran further suggested that the remaining funds are used to support the profitability of Tron and Poloniex.
A Huobi spokeswoman called this information "pure rumor." She specified that the exchange is operating in a normal mode.
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