Rumors on Twitter provoked a major fund outflow from accounts of the crypto exchange Huobi.
Users withdrew over 6,500 BTC from Huobi accounts over the past 30 days, Coinglass reported. Analysts at ScopeProtocol also recorded asset outflows in the Ethereum network, and Nomics data showed that daily trading on the platform fell by more than 20%.
Leading representatives from the crypto community on Twitter emphasized Huobi’s structural problems and weirdnesses in Justin Sun’s behavior. According to reports, exchange employees had their annual bonuses canceled and their salaries transferred to USDT and USDC. The entrepreneur personally exchanged over $1.5 billion in stablecoins into fiat since October 2022. There have also been rumors of mass layoffs expected at the company.
Justin Sun responded to rumors by claiming a record average daily growth rate of new registered users and a capital inflow that exceeds the 2022 peak. Recall that rumors about TRON Foundation founder’s interest in acquiring Huobi began circulating last August. In early December, a strategic partnership between Huobi and Poloniex, owned by Justin Sun, became known.
Data from DefiLlama shows that total cash outflow from Huobi accounts exceeded $147 million over the last 30 days, compared to $7.46 billion seen by Binance, which is also affected by FUD. Overall outflows from centralized exchanges after FTX’s collapse topped $19 billion by the end of 2022.
