Huobi Crisis??
Huobi's Reserve Poor: Justin Sun is messing around with user funds via stUSDT and Huobi (mainly USDT and ETH)
- Justin Sun launched stUSDT, showing 4.29% APY and 351,380 users, but 98% of the tokens on Tron's own chain are considered directly owned by Justin Sun or Huobi, and staking USDT to stUSDT You can see that it is swept to the Huobi deposit address
- It is mainly being sent to Justin Sun or Huobi or Justin Sun's Binance address, and a significant amount is used to support its own DeFi app.
- Huobi's own 'Merkle Tree Audit' still shows $631M USDT as user funds, but the update ended last month, and in reality, USDT and USDC combined are shown to be around $90M
- In addition to this, Huobi users' ETH also converts a large amount to stETH
As such, Huobi is in a very unhealthy state and TVL continues to decline.
- Like Poloniex, Justin Sun is using Huobi as a personal piggy bank to make money from user deposits, which he can't afford if users withdraw USDT and ETH in bulk.
- As a result of this situation, TVL continues to decrease significantly over the weekend, from about $3B to $2.5B.
- In addition, last weekend, Chinese public security officials were investigating cryptocurrency exchange executives for providing payment settlement services to illegal gambling sites, and Huobi denied rumors that Justin Sun was involved, but user anxiety was further amplified.
#Huobi #JustinSun