Huobi’s TVL drops to $2.5B amid rumors of insolvency, investigations in China

The crypto exchange allegedly faces solvency problems. According to DefiLlama information on Aug. 6, Huobi wallets held only $72 million in USDT and USDC combined.Huobis reserves of USDT, USDC on Aug. 6. Magazine: Deposit threat: What do crypto exchanges truly do with your money?

Cryptocurrency exchange Huobi has seen outflows worth $64 million in between Aug. 5-6 in the middle of continuous rumors about its solvency and that Chinese authorities were investigating its executives. Outflows over the weekend led to the exchanges total value locked (TVL) being up to $2.5 billion at the time of writing, below $3.09 on July 6. Rumors that the exchanges leadership had been apprehended in China initially emerged on Aug. 4 as part of a supposed investigation into the exchanges negotiations with gambling platforms. Speaking with Cointelegraph, a Huobi representative labeled the claims as phony news. Reports surface as authorities are apparently tightening up control over cryptocurrency exchanges in mainland China.Cointelegraph has actually learned that a minimum of one C-level executive has actually left Huobi over the previous few weeks, although its unclear whether the departure is connected to investigations in China. On social networks platform X (previously Twitter), Huobis head of social networks said the rumors are untrue and that the exchange is “currently doing well.” The source has been validated as a senior executive at Tron who has initially hand knowledge of the investigation and has been at Tron for many years.Whether youve been informed or not, your colleagues are presently under criminal investigation.– Adam Cochran (adamscochran.eth) (@adamscochran) August 6, 2023

Cryptocurrency exchange Huobi has actually seen outflows worth $64 million between Aug. 5-6 in the middle of ongoing rumors about its solvency and that Chinese authorities were investigating its executives. Reports that the exchanges leadership had been apprehended in China first surfaced on Aug. 4 as part of a supposed examination into the exchanges dealings with betting platforms. Reports surface area as authorities are supposedly tightening up control over cryptocurrency exchanges in mainland China.Cointelegraph has actually learned that at least one C-level executive has left Huobi over the previous few weeks, although its unclear whether the departure is linked to examinations in China.