Crypto Exchange Huobi Loses $64 million Amidst Rumors of Financial Troubles

Crypto exchange Huobi has lost $64 million from Aug. 5-6 due to rumors of financial trouble and an investigation by Chinese authorities. This loss caused Huobi's total value to drop from $3.09 billion on July 6 to $2.5 billion now.

On Aug. 4, news spread that Huobi's leaders may have been arrested in China because of their dealings with gambling platforms. However, a Huobi representative said these rumors are false. This comes as China is increasing control over crypto exchanges.

There are also reports of a top executive leaving Huobi recently, but it's not clear if this is related to the China investigation. Huobi's social media head stated on X (previously Twitter) that the exchange is "currently doing well" and the rumors are not true.

Huobi is also accused of having financial problems. Adam Cochran, a fintech executive and investor, pointed out that the exchange might be insolvent or unable to pay its debts. Cochran noticed that Huobi had less than $90 million in USDT and USD Coin combined on Aug 5, while its latest report claimed users held $630 million in USDT. Cochran declared, "Huobi is deeply insolvent."

On Aug. 6, data showed that Huobi had just $72 million in USDT and USDC.