Market watchdog Adam Cochran’s latest claims are on the agenda. In addition, the allegations have led to concerns within the cryptocurrency community about the financial health of Bitcoin exchange Huobi. Cochran’s claims point to potential bankruptcy. However, Wu Blockchain, which follows the developments in the crypto money world, looks at the situation differently. Accordingly, it responds by offering a more nuanced perspective.
Financial stability of Bitcoin exchange Huobi
Huobi, one of the leading players in the Bitcoin and crypto money sector, is on the agenda. It has become a topic of controversy in recent days due to allegations made by Adam Cochran, who is known for his posts on concerns about Tether. Cochran suggests that Huobi, whose chief counsel is Justin Sun, is currently facing bankruptcy.
A more balanced perspective on the claims against the Bitcoin exchange
However, Wu BlockChain disputes Cochran’s claims. The Bitcoin exchange says recent investigations involving Huobi and Tron executives are not indicative of impending bankruptcy. Wu BlockChain noted that such investigations are not uncommon in China, especially among offshore exchanges. Since most of the founders of these exchanges are based in Singapore, the commercial impact is considered minimal.
Wu BlockChain’s response underscores the value of Cochran’s critical approach. However, it symbolizes the stance against excessive exaggeration that will lead to misinformation. It reveals that the underlying cause of the situation is less complicated than claimed. Accordingly, he explains what is happening based on the difficulty of obtaining adequate funding from local governments. It also ties to the need to raise funds through Bitcoin and cryptocurrency companies that are not subject to Chinese law.
Should I be afraid?
parofix.com Cochran’s findings revealed a consistent decline in USDT on the Huobi exchange for several weeks, triggered by Sun’s launch of stUSDT, a token allegedly backed by government bonds with a yield of 4.29%. Cochran’s assessment revealed that Sun and Bitcoin exchange Huobi collectively own 98% of the stUSDT Tokens, and that USDT deposited in stUSDT is consolidated at a Huobi deposit address. Unlike the expected redemption of up to $500 million from Huobi addresses on Tron, Cochran’s research showed that such redemptions do not exist because the tokens are sent directly to the main address.
Cochran revealed through Analysis that these tokens were then routed to addresses controlled by Sun, including the Binance address. In addition, a significant portion of stablecoins are allocated to DeFi positions such as Sun’s JustLend. Cochran’s research revealed that Huobi holds a total of $90 million in USDT and USDC. Despite this, Huobi’s “Merkle Tree Audit” points to a wallet balance of 631 million USDT, as well as 630 million USDT held by Huobi users.
Response to allegations
In response to Cochran’s claims, a Huobi community manager responded to Adam Cochran’s post. Accordingly, he stressed that the allegations were unfounded. Huobi’s Xandi executive says that neither Bitcoin exchange Huobi nor Tron have been questioned by the police. He also states that all operations are continuing as normal. Xandi called for refraining from spreading misinformation. He also called for cooperation to stop the spread of misinformation.
parofix.com
Financial stability of Bitcoin exchange Huobi
Huobi, one of the leading players in the Bitcoin and crypto money sector, is on the agenda. It has become a topic of controversy in recent days due to allegations made by Adam Cochran, who is known for his posts on concerns about Tether. Cochran suggests that Huobi, whose chief counsel is Justin Sun, is currently facing bankruptcy.
Cochran has claims. He links recent events to a potential financial crisis on the Bitcoin exchange Huobi. He stressed that the mass sale of USDT by Binance and the police interrogation of Huobi and Tron executives coincided with the launch of stUSDT by Justin Sun. In addition, Cochran points to unusual balance changes on Huobi over the past month. Accordingly, it implies that there is a financial strain.
A more balanced perspective on the claims against the Bitcoin exchange
However, Wu BlockChain disputes Cochran’s claims. The Bitcoin exchange says recent investigations involving Huobi and Tron executives are not indicative of impending bankruptcy. Wu BlockChain noted that such investigations are not uncommon in China, especially among offshore exchanges. Since most of the founders of these exchanges are based in Singapore, the commercial impact is considered minimal.
Wu BlockChain’s response underscores the value of Cochran’s critical approach. However, it symbolizes the stance against excessive exaggeration that will lead to misinformation. It reveals that the underlying cause of the situation is less complicated than claimed. Accordingly, he explains what is happening based on the difficulty of obtaining adequate funding from local governments. It also ties to the need to raise funds through Bitcoin and cryptocurrency companies that are not subject to Chinese law.
Should I be afraid?
parofix.com Cochran’s findings revealed a consistent decline in USDT on the Huobi exchange for several weeks, triggered by Sun’s launch of stUSDT, a token allegedly backed by government bonds with a yield of 4.29%. Cochran’s assessment revealed that Sun and Bitcoin exchange Huobi collectively own 98% of the stUSDT Tokens, and that USDT deposited in stUSDT is consolidated at a Huobi deposit address. Unlike the expected redemption of up to $500 million from Huobi addresses on Tron, Cochran’s research showed that such redemptions do not exist because the tokens are sent directly to the main address.
Cochran revealed through Analysis that these tokens were then routed to addresses controlled by Sun, including the Binance address. In addition, a significant portion of stablecoins are allocated to DeFi positions such as Sun’s JustLend. Cochran’s research revealed that Huobi holds a total of $90 million in USDT and USDC. Despite this, Huobi’s “Merkle Tree Audit” points to a wallet balance of 631 million USDT, as well as 630 million USDT held by Huobi users.
Response to allegations
In response to Cochran’s claims, a Huobi community manager responded to Adam Cochran’s post. Accordingly, he stressed that the allegations were unfounded. Huobi’s Xandi executive says that neither Bitcoin exchange Huobi nor Tron have been questioned by the police. He also states that all operations are continuing as normal. Xandi called for refraining from spreading misinformation. He also called for cooperation to stop the spread of misinformation.
Contact us to be instantly informed about breaking news Twitter’also Facebookand InstagramFollow along at . Telegram and Youtube Join our channel.Hey, manThis is Xandi from Huobi. Neither Huobi nor Tron is questioned by the police and it has been pure rumors. We find it important to avoid false information in this age and please note all operation has been normal as usual
— 三三 Huobi (@33Huobi) August 6, 2023
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