Rumors are spreading online that the Huobi exchange is facing insolvency, and Chinese authorities are investigating
company leaders.
Huobi reported that rumors about the arrests of management are untrue.
At the same time, Chinese journalist Colin Wu confirmed the information that the authorities are investigating the company’s activities, but he noted that this is standard practice in China in relation to offshore exchanges.
Investor Adam Cochran also noted the discrepancy between the company’s balances in USDT and USDC.
According to DefiLlama, Huobi held about $90 million as of August 5, but the latest audit shows that users hold $630 million on the exchange. According to Cochran, Huobi is insolvent.
The head of the exchange, Justin Sun, said that this is all FUD.#USDT #Huobi