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Huobi Lands in Deep Trouble, $400m Funds Extracted From the Platform

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Highlights

    Huobi COO, Robin Zu is reportedly under investigation by the local police according to the local news agencies.

    A tremendous amount of cryptos including Bitcoin, Tether, USDC, etc were withdrawn from the exchange

Despite Being in Deep Waters, Huobi Says It’s Fine!!

The crypto space fell into the well of fear with the rounds of Huobi COO, Robin Zu getting arrested by the authorities. However, Huobi has denied the arrest and also said the smooth functioning of the exchange would continue.

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The bitter experiences from the recent events might have created FUD among the investors and whales, who pulled out their holdings from the platform. As much as cryptos worth more than $400 million were transferred or withdrawn. 

A popular crypto tracker Whale Alert who records huge and interesting transfers put out the details of the transfers on twitter. However, Huobi in it’s official blog wrote,

“We are currently operating normally, user assets are safe, and trading, deposits, and withdrawals are operating as expected,”

Also Read: Crypto Market Keeps Holders on Their Toes With a Drastic Plunge- What Next?

Huobi Native Tokens Plunges Significantly

With the uncertainty with the platform amid the rumors, the investors just withdrew their holdings on the exchange, fearing the Okex outcome. This however had a huge impact on the Huobi exchange native token Huobi Token(HT).

The market capitalization of the token reduced drastically by nearly $100 million with the price trembled down to $3.63 with a drop of 11.13 percent in the HT price. The token was oversold in the last 24 hours. 

In the contrast, the whole crypto space has been witnessed a severe drought today with most of the assets decline. 

Is the Government Wagged a War With the Crypto Market?

Previously, a similar kind of scenario was witnessed with another exchange called Okex. One of the key members was arrested to conduct some investigation and the exchange stopped the withdrawal service. 

It is more than 15 days now, still, the withdrawal service is yet to be resumed. And the current possible crackdown on one of the largest exchanges in the country has raised many eyebrows. 

On the other hand, the country’s own CBDC which was released as a ‘pivot program’ in some selected cities previously also has been successful. According to the reports, the CBDC has recorded near to half a billion transactions to date. 

Therefore, it appears that the government has initiated a ‘cold war’ with the crypto space in the country to propel the CBDC mass adoption.

Interesting Read: Big Breaking! Tron Foundation to Honour Tokens Stuck Up at Okex Exchange

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Disclaimer : The opinion expressed here is not investment advice – it is provided for informational purposes only. It does not necessarily reflect the opinion of Coinpedia. Every investment and trading involves risk, so you should always perform your own research prior to making decisions. We do not recommend investing money you cannot afford to lose.

Qadir AK

Qadir Ak is the founder of Coinpedia. He has over a decade of experience writing about technology and has been covering the blockchain and cryptocurrency space since 2010. He has also interviewed a few prominent experts within the cryptocurrency space.

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