Huobi battles on amidst FUD allegations

Huobi is doing its best to dispel the arrest and financial stability rumours that have led to a flight of funds.

Huobi Global, a prominent Asian crypto exchange, has found itself at the centre of some negative speculation recently. Over the past week the exchange has suffered from whispers of employee arrests, potential insolvency, and fraud allegations.

The FUD

The saga first unfolded when a tweet by Wu Blockchain hinted at investigations into several crypto exchange leaders by mainland authorities. At least one other Twitter account reported that multiple Huobi executives were apprehended by mainland police, with some staff even advised to exit the country.

In a swift response, Huobi refuted the claims. The company’s representative made a request to the mentioned websites to rectify the “misinformation” and hinted at possible legal actions.

In a Kitco article on the subject, a message conversation between a spokesperson from Huobi and Adam Cochran of Cinneamhain Ventures was recorded. While the Huobi representative sought to avoid FUD, Cochran replied that his source was verified as a senior Tron executive, and repeated his claim that the spokesperson’s ‘colleagues’ were “under criminal investigation”.

Despite these claims, Huobi has remained steadfast, dismissing the insolvency speculations as mere attempts to spread “fear, uncertainty, and doubt.”

The positives

In the face of the ongoing turbulence, a Huobi representative confirmed the exchange’s intention to pursue a VAT licence, highlighting the recent example of the introduction of a Hong Kong trading app for retail investors.

A substantial inflow to Huobi in USDT and USDC on August 8 and 9, as per data from Defi llama, was speculated to be from a wallet associated with Justin Sun, and has appeared to bolster investor confidence as Huobi’s total locked assets made a notable rise from previous figures.

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.