During the period from August 5th to August 6th, Huobi exchange recorded a net outflow of $64 million. This resulted in a decrease in the Total Value Locked (TVL) on the exchange, bringing it down to $2.5 billion.
Furthermore, on August 6th, Adam Cochran, an investor with over 200,000 followers on Twitter, posted a series of tweets highlighting some unusual signs from Huobi and Justin after their collaboration with Curve Finance to launch the stablecoin stUSDT, which has been a topic of controversy.
Adam Cochran pointed out the following information:
1. Binance started selling a large amount of USDT, which could be seen as a strategic move to compete with Huobi.
2. Some Huobi executives and Tron staff were reportedly questioned by the police, although a Huobi spokesperson refuted these claims as mere rumors.
3. There were some suspicious changes in the balances at Huobi in the previous month.
4. There were rumors that Justin Sun used users’ Ethereum balances to support other DeFi applications and attract more users to Huobi.
Cochran also accused that users’ Ethereum balances were mysteriously converted to stETH. He mentioned that at least one high-level executive had left Huobi, but it is unclear whether this departure is related to the investigations in China or not.
Huobi is facing legal challenges in different regions. An enforcement action by the Securities Commission of Malaysia forced the exchange to shut down its operations in the country in May.
However, a spokesperson from Huobi asserted that the information being circulated is false, and the exchange is operating normally. The situation is still being closely watched and monitored by the community.