- There were unconfirmed reports of Huobi’s Chief Operating Officer being investigated by Chinese authorities
- The news triggered a massive withdrawal of Bitcoin from Huobi
- Huobi Token (HT) has been hit hard by the news falling by 22%
- The team at Huobi have stated that such reports are rumors
In the last 24 hours or so, the crypto exchange of Huobi has been the subject of discussion amongst several crypto communities as it was reported that the platform’s COO was being investigated by authorities in a manner similar to OKEx‘s founder.
According to one report by Colin Wu shared below, the prospects of a Huobi executive being under investigation triggered panic selling at the exchange that resulted in the Huobi Token taking a nosedive in the crypto markets.
HT suddenly fell sharply, 100 million USDT was transferred, COO was reported to be investigated but there was no response temporarily, triggering panic in the Chinese market. Huobi is the largest exchange in China. After the OK, Huobi was also panicked. pic.twitter.com/oQtQBQhh1N
— Colin Wu（WuBlockchain） (@WuBlockchain) November 2, 2020
Colin Wu went on to explain that assets on Huobi were safe and that the news of an investigation was triggered by Huobi’s executives being unreachable as they traveling on a plane.
Huobi JunDu stated that all user assets are safe and everything is fine, users can withdraw coins.
Huobi employees are on their way back to Beijing from Guizhou. There are rumors that the senior management cannot be contacted because they are on the plane. In Guizhou, Li Lin said that he is not afraid of supervision and he is confident that he has not done anything illegal.
A Lot of Bitcoin Left Huobi Soon After
When news broke of the possibility of Huobi’s COO being investigated, the Whale Alert bot flagged $500 Million in Bitcoin leaving Huobi. Below is a tweet that aggregates the alerts of Bitcoin leaving Huobi.
Over $500 million dollars transferred out of Huobi. pic.twitter.com/wlTFRXugVU
— CryptoWhale (@CryptoWhale) November 3, 2020
Huobi Classifies Reports as Rumors
Since news hit the internet of a possible investigation related to a Huobi Executive, the price of Huobi Token has fallen from $4.50 levels to its current price of $3.50. This is a significant drop of 22% in 24 hours.
In response to the reports of its COO being investigated by authorities, the team at Huobi Global has classified such news as rumors as seen in the following tweet.
Huobi Global Is Operating Normally
We have become aware of rumors within our community about the arrest of a Huobi senior executive by local officials. We can share with confidence that these rumors are false.
— Huobi (@HuobiGlobal) November 2, 2020