Huobi COO confirms arrest, Huobi token crashes, and many strange things happen

Centralized exchanges are currently experiencing some issues after the recent OKEx and KuCoin issues. This time it’s Huobi Global, with strange events on the stock market.

Source: Weibo

According to Source of informationHuobi CEO (COO) Zhu Jiawei has been under investigation for some time, while Huobi founder Li Lin appears to have disappeared from public forums.

Zhu Jiawei – COO Huobi

This is the latest in a string of regulatory and repressive pressures on the China-based exchange. Events like this are usually very noticeable as centralized exchanges often have multiple signed cold wallets to process withdrawals. So if an executive is investigated or jailed, they cannot authorize and users cannot withdraw. Huobi users are currently report Withdrawal problem.

Li Lin – founder of Huobi

Breaking: Wu confirmed from multiple sources that a police investigation is underway against Huobi COO Zhu Jiawei. He’s number two in Huobi. Huobi is the exchange with the most Chinese users and the largest Bitcoin stock in the world. Li Lin, the founder of Huobi, is unknown. pic.twitter.com/MbOwLWxx6o

– Colin Wu （WuBlockchain） (@WuBlockchain) 3rd November 2020

Breaking: Wu (Author) has confirmed from multiple sources that a police investigation is underway against Huobi’s COO Zhu Jiawei. He’s number two in Huobi. Huobi is the exchange with the most Chinese users and the largest Bitcoin exchange in the world. Li Lin, the founder of Huobi, doesn’t know where.

Huobi Token (HT) is down almost 18% in the past week

It’s no surprise that the Huobi Token (HT) price on the exchange has gone down over the past 7 days. Currently it’s down almost 17% in the week and 5% in 24 hours. As the future of the stock market became uncertain and the risk of trapped capital increased, investor confidence in HT suffered.

Huobi token (HT) | Source: CoinGecko

Whale alert: cash outflow great from Huobi Global

But that’s not the only problem, the quality transaction monitoring tool Whale Alert reveals that over $ 500 million has been withdrawn from Huobi in the past 24 hours. The timing is random and suggests that key players are pulling funds from the exchange in the event law enforcement operations could freeze funds.

The team has not yet addressed the matter, raising doubts and concerns about a bankruptcy where user funds may become unavailable for an extended period of time. Unfortunately, recent tweets from Huobi’s official Youtube Channel claim that everything is normal and that untrue rumors are not helping in the current situation.

$ 500 Million Huobi Transfers | Source: Whale alert

In addition, a lot of USDT was transferred to and from Huobi during the rumors that Huobi’s COO was arrested.

According to Whale Alert, a total of $ 120,429,156 was transferred from Huobi. Of this, USDT99.99,656 was transferred to Bitfinex and USDT20,429,500 to the crypto derivatives exchange FTX.

A total of $ 434,429,165 was transferred to Huobi. This included 334,429,510 USDT from unknown wallets and 99.99,655 USDT from Bitfinex (1 USDT difference). The full list is as follows:

1. $ 429,165 USDT was transferred to Huobi, mostly from Bitfinex.
2. 00,000 USDT from unknown wallet to Huobi. transferred
3. 00,000 USDT transferred from Huobi to Bitfinex
4. 00,000 USDT transferred from Huobi to Bitfinex
5. 00,000 USDT transferred from Huobi to Bitfinex
6. 00,000 USDT transferred from Huobi to Bitfinex
7. 00,000 USDT transferred from Huobi to Bitfinex
8. 00,000 USDT transferred from Huobi to Bitfinex
9. 00,000 USDT transferred from Huobi to Bitfinex
10. 00,000 USDT transferred from Huobi to Bitfinex
11. 00,000 USDT transferred from Huobi to Bitfinex
12. 999,656 USDT transferred from Huobi to Bitfinex
13. USDC 000,500 from unknown wallet to Huobi. transferred
14. $ 000,500 transferred from Huobi to FTX
15. USDC 429,000 from unknown wallet to Huobi. transferred
16. 429,000 USDC transferred from Huobi to FTX
17. $ 99,999,655 from Bitfinex to Huobi. transfer
18. 00,000 USDT from unknown wallet to Huobi. transferred
19. 204,000,010 USDT from unknown wallet to Huobi. transferred

The Huobi exchange has the most Chinese users and the Chinese government is not very happy with the crypto infrastructure that is beyond its control, especially at a time when the Central Bank (CBDC) digital currency race is heating up and the People’s Bank of China is in the process of pushing ahead with the implementation of the digital yuan.

But unlike before, the crypto market doesn’t seem to have been very hit by the news. This is due to the maturity of the market. Lately, the decentralized infrastructure has also been improved and used more, which limits users’ dependence on traditional exchanges. During these times, users should withdraw funds from the central exchange and keep the lock themselves.

Thuy Trang

According to AZCoin News

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