Cryptocurrency exchange Huobi has recorded more than $94.2 million in net withdrawals over the past week. In the last 24 hours alone, approximately $60 million left the platform, according to a report by the cryptocurrency analytics firm; nansen.
In the past 24 hours, Huobi has seen a significant increase in net outflows
$60.9M* of the $94.2M* net outflow in the past week occurred in the past day alone
*Contains Ethereum, Avalanche, BNB Chain, Fantom, & Polygon flows pic.twitter.com/JV1Tg13QMY
—Nansen (@nansen_ai) January 6, 2023
Nansen also reported that a significant portion of the withdrawals were mainly in Tether (USDT), USD Coin (USDC) and Ether (ETH), coming from wallets with high balances.
The significant increase in IPOs was allegedly triggered by rumors circulating on Twitter about Huobi laying off staff and shutting down internal communications amid insolvency issues.
A Huobi spokesperson told Cointelegraph on Jan. 6, that rumors that Huobi would lay off up to 40% of employees were false, stating; “The planned layoff ratio is around 20%, but it has not been implemented at the moment.” The layoff of 20% of its employees is allegedly part of an ongoing restructuring following Justin Sun’s takeover of the company.
In response to rumors about the financial health of the exchange and allegations of layoffs, Justin Sun claimed that the platform’s business was healthy and claimed that user assets were fully protected.
Despite Huobi debunking these rumors, many users remain skeptical about the future of the platform due to Justin Sun’s antics.
Huobi’s shadow owner is Justin Sun. Justin Sun is perhaps the most erratic billionaire in crypto. Justin has been sending billions of dollars of stablecoins around the space, including in and out of Binance. Something huge is a foot. Withdraw all coins from unregulated exchanges. https://t.co/zDDaNIqyl7
—Mike Alfred (@mikealfred) January 6, 2023
Huobi’s secret owner is Justin Sun. Sun is perhaps the most erratic billionaire in the crypto space. Justin has been sending billions of dollars worth of stablecoins all over the space, even depositing and withdrawing from Binance. Something huge is afoot. Withdraw all your coins from unregulated exchanges.
In October 2022, Huobi founder and majority shareholder Leon Li sold his entire stake in the exchange to a Sun-linked company. Following this sale, several key Huobi executives immediately left the company. These departures are believed to have been related to the company’s reorganization efforts, which began after Sun took over the company.
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