The cryptocurrency sector has recently been associated with turbulent events, and the role of cryptocurrency exchanges in this cannot be underestimated. Lawsuits against leading cryptocurrency exchanges Binance and Coinbase and the collapse of FTX have diminished trust in them. Now, all eyes are on Huobi, the center of these allegations.
It is claimed that Huobi cryptocurrency exchange does not have enough assets to cover its customers’ funds. Renowned cryptocurrency analyst and researcher Adam Cochran was one of the first to make these allegations, stating that Huobi was the source of the imbalance in Tether (USDT). Cochran revealed that Binance started selling large amounts of USDT and that some Huobi executives and Tron personnel were questioned by the police.
This controversy arose right after the release of the stablecoin called sdtUSDT. As questions about Huobi’s assets increased, the exchange quickly denied all allegations. In addition, the allegations of Justin Sun making millions of dollars in transfers were also refuted by both Justin Sun and Huobi.
Five hours ago, it was observed that Sun transferred $200 million worth of USDT from the JustLendDAO wallet to his personal wallet on Huobi. Although it is claimed that this transfer was not made by Sun, on-chain confirmation was not delayed.
PeckShield Alert confirmed that these transfers were indeed made by wallets associated with Sun. This may indicate an attempt to cover the alleged $400 million shortfall. The targeted Huobi was emphasized to have a $400 million balance deficit.
The confirmation of Sun’s transfers actually shows that the exchange has been lying to its users. However, it is still unknown whether Huobi, the cryptocurrency exchange, is really facing such a problem. When FTX experienced a similar situation, it was understood through increased pressure and withdrawal requests. Now, it seems that Huobi experiencing a similar situation could worsen the situation and the cryptocurrency exchange could experience another shock. Justin Sun has not yet made an official statement following this confirmation.