Huobi Denied Rumors that Company Executive Has Been Arrested

Huobi denied the rumors that emerged earlier today, that a company executive has been arrested. Despite the exchange assuring traders, a huge chunk of bitcoin flowed out of the exchange and $400 million in Tether came in so let’s read more in our latest Huobi news.

The global exchange Huobi denied the rumors about a senior executive being taken by the police, similarly to the OKEx situation that happened almost two weeks ago. The exchange has a monthly trading volume above $170 billion but denied the rumors that the senior executive of the platform was arrested. A tweet from the company reads:

 “All of Huobi’s management team members have been accounted for and have not been detained or arrested. We understand that the spread of false information can lead to concerns about the safety of user assets, but please rest assured your assets are safe.”

If the rumors are true and some of the #Huobi management were taken into custody, take this as a preventive crisis comms tweet saying “yes, it’s true, but withdrawals will be fine unlike on #OKEx”. https://t.co/c1lKevzyBJ

— TSS (@SandorReport) November 2, 2020

The rumors were initiated on social media that the COO Robin Zhu of Huobi Global Limited based in Singapore, has been arrested by authorities. The exchange’s assurances haven’t stopped the users from taking out their money as they found themselves in a similar situation to OKEx. The founder of the exchange Xu Mingxing was detained by police back in October and the exchange stopped all withdrawals since October 16^th. The users still don’t know when OKEx will resume trading.

Looking at #Huobi netflow, $BTC outflow has soared in the last eight hours.https://t.co/TDmLoSlfYQ pic.twitter.com/H5oUzPM5XU

— CryptoQuant.com (@cryptoquant_com) November 2, 2020

Several hours after addressing the rumors of the arrest, Huobi tweeted that it uses a multi-signature process for withdrawals so that the users don’t have to rely on a single-key holder. A week ago, OKEx replied to the speculation that they were using a single-signature BTC wallet and claimed they do not but the stopping of the withdrawals aligns with Xu’s detention. According to CryptoQuant, a huge chunk of Bitcoin left the chain earlier today, and around the same time, a huge inflow of Tether of about $400 million made its way into Huobi wallets. The reason for that is unknown. The  Huobi token which is an Ethereum-based asset that provides exchange users with rewards, dropped by 10% in the past 24 hours.

As Reported previously, Huobi launched two new wrapped assets on Ethereum and traders remained apathetic after the announcement. Huobi Global released the latest H-Token series in the meantime on Litecoin and Bitcoin SV. However, traders and developers don’t seem really interested.