The Huobi exchange has received $200 million in USDT and 5,000 Ethereum (ETH) or $9 million from a whale. On-chain data seem to indicate that these funds come from Justin Sun, who wants to replenish the coffers of his exchange Huobi, shaken by a wave of withdrawals linked to rumors of insolvency. For the moment, Huobi categorically denies that its CEO is behind the transaction, and also reassures us about the platform’s financial health. Will Huobi be the next FTX? No one can say for sure.
Huobi receives nearly 210 million from … its CEO ?
The exchange Huobi continues to fuel the news in the crypto ecosystem over the last few days. This Tuesday, August 08, a whale made two major deposits on the Huobi platform.
A first transaction of $200 million was made in USDT, before a second of almost $9.15 million followed in Ethereum (ETH). In all, nearly $210 million was deposited on the platform, strengthening its USDT and ETH holdings.
A first transaction from 200 million was made in USDT before a second from nearly $9.15 million in Ethereum (ETH). This brings the total nearly $210 million were deposited on the platform, bolstering its USDT and ETH inventories.
There’s nothing unusual about these operations for a crypto exchange. However, when the origin of the funds is carefully analyzed, all becomes clear. Indeed, on-chain data seems to show that both transactions were made by Justin Sun, the CEO of Huobi.
Indeed, according to PeckShieldAlert, the address that sent funds to Huobi is labelled as belonging to Justin Sun.
Furthermore, the address from which the funds received from Huobi originated is closely linked to Tron (TRX), Justin Sun‘s crypto. Indeed, this address is tagged as one of the top 10 Tron (TRX) holders.
Although all leads on the origin of the funds received by Huobi lead to Justin Sun, a spokesperson for the exchange has indicated to the contrary to our CoinDesk colleagues. An opinion clearly shared by Justin Sun himself.
Is Justin Sun bailing out Huobi to prevent its collapse?
Suspicious deposits on Huobi come at a very delicate time for the platform. It could be that through these deposits, Justin Sun seeks to replenish the coffers of Huobi, shaken by rumors of insolvency and massive withdrawals. Reports of the arrest of several exchange officials in China were also widespread.
This information created a wave of panic among Huobi and many rushed to withdraw. According to Nansen.ai, nearly $101 million was withdrawn from Huobi in the last seven days.
Huobi reassures its users and the crypto community
While memories of the collapse of FTX are still fresh, the news from Huobi is rightly worrying. However, Huobi would like to reassure its users that the platform is safe from collapse.
In a press release published on August 7, Huobi says it faces an annual campaign of denigration and hatred on social networks, despite the platform’s commitments over the past 10 years.
The exchange also reports that it is operating normally and that rumors of insolvency are untrue.
Is the Huobi exchange currently in difficulty? Absolutely. Massive withdrawals are having a negative impact on the platform’s financial health. Without the two deposits of almost 210 million, the situation would not be looking good at the moment. There’s no doubt that these deposits came from Justin Sun or one of his close associates. For the time being, Huobi users are advised to exercise caution. To avoid any unpleasant mishaps, it’s best to keep your funds in a decentralized wallet. The D’Cent wallet we recently presented is an interesting alternative for securing your funds.
I dream of a world where every citizen has total control over themselves, including their finances. I believe that Bitcoin is one of the tools that will achieve this revolution. Since 2019, I am learning about this cryptocurrency and spreading the word around.
