Between August 5 and 6, cryptocurrency exchange Huobi has had outflows worth $64 million, containing a prolonged fall in total value locked (TVL) on the crypto exchange to $2.5 billion from $3 billion on July 6.
This outflow has been under the spotlight due to some rumors about Huobi’s bankruptcy and Chinese authorities investigating its executives.
According to rumors, as part of an alleged investigation, the exchange’s leaders had been arrested in China on August 4 because these exchanges were dealings with gambling platforms.
The spokesperson of Huobi deied the rumours and said, “Neither Huobi nor Tron is questioned by the police and it has been pure rumors.” These rumors are ongoing because the authorities are taking strict control over the cryptocurrency exchanges in mainland China.
Fintech executive and angel investor Adam Cochran stated in a series of tweet that the firm could be insolvent due to inconsistencies in its Tether holdings. Houbi’s crypto exchange reportedly facing the solvency issues.
Houbi wallets only held $72 million in USDT and USDC combined, according to DefiLlama data on August 6.
In the past, Huobi also faced challenges in other jurisdictions as well. In May, the Malaysian securities regulator took enforcement action to force it to close Huobi operations in the country.
