Crypto Daily
2023-08-07 08:00:00

Huobi Faces Insolvency Rumors Amid $USDT Selloff

Prominent crypto analyst and investor Adam Cochran has called into question the solvency of Huobi, the 12th largest cryptocurrency exchange globally by spot trading volume.In a series of recent tweets, Cochran pointed to significant discrepancies in Huobi's reported Tether (USDT) holdings, suggesting that the firm might be failing to meet its financial obligations. Cochran bases his assertions on a detailed examination of Huobi's balance sheets and the recent activities of Justin Sun, the founder of Tron. Despite these allegations, Huobi maintains that all operations are proceeding as normal. According to Cochran's investigation, Huobi's own "Merkle Tree Audit" indicates a significant discrepancy in the exchange's held assets. He points out that while the audit lists that Huobi users hold $631 million worth of Tether (USDT), Huobi's actual holdings amount to only $90 million. This significant gap, Cochran alleges, is indicative of insolvency. Cochran further argues that Sun has been treating the exchange like a personal piggy bank, transferring funds to his decentralized finance (DeFi) projects and thus leaving the exchange unable to meet its obligations. Specifically, he alleges that Sun is inflating the yield on his DeFi apps to entice more deposits into Huobi. Adding to the concerns, Cochran noted a substantial sell-off of Tether (USDT) on Binance, which he believes is connected to the solvency fears surrounding Huobi. He also raised questions about Sun's recently launched "stUSDT", a variant of USDT that Sun claims is backed by government bonds. Cochran alleges that the stUSDT does not have sufficient backing, which further compounds the potential risk. Cochran also pointed out that certain Huobi and Tron executives are reportedly under investigation by Chinese authorities, a development that has fanned the flames of these allegations. These apprehended individuals reportedly include key personnel from both organizations, adding more credibrility to the concerns about Huobi's financial stability. Huobi has denied any wrongdoing and maintains that all operations are running normally. However, Cochran dismissed these assertions, stating that his source, a senior executive at Tron, confirmed that team members are indeed under investigation due to actions related to Huobi. Cochran's analysis, if accurate, paints a worrying picture for Huobi's financial health, adding fuel to rumors of the company's potential insolvency. If Huobi users begin to lose faith in the exchange's financial stability, it could lead to a mass exodus from the platform and significant upheaval in the crypto market. Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

Crypto 뉴스 레터 받기
면책 조항 읽기 : 본 웹 사이트, 하이퍼 링크 사이트, 관련 응용 프로그램, 포럼, 블로그, 소셜 미디어 계정 및 기타 플랫폼 (이하 "사이트")에 제공된 모든 콘텐츠는 제 3 자 출처에서 구입 한 일반적인 정보 용입니다. 우리는 정확성과 업데이트 성을 포함하여 우리의 콘텐츠와 관련하여 어떠한 종류의 보증도하지 않습니다. 우리가 제공하는 컨텐츠의 어떤 부분도 금융 조언, 법률 자문 또는 기타 용도에 대한 귀하의 특정 신뢰를위한 다른 형태의 조언을 구성하지 않습니다. 당사 콘텐츠의 사용 또는 의존은 전적으로 귀하의 책임과 재량에 달려 있습니다. 당신은 그들에게 의존하기 전에 우리 자신의 연구를 수행하고, 검토하고, 분석하고, 검증해야합니다. 거래는 큰 손실로 이어질 수있는 매우 위험한 활동이므로 결정을 내리기 전에 재무 고문에게 문의하십시오. 본 사이트의 어떠한 콘텐츠도 모집 또는 제공을 목적으로하지 않습니다.