Huobi, a prominent cryptocurrency exchange, has refused ongoing rumors about its insolvency, which were fueled by the recent Total Value Locked (TVL) data that indicated an outflow of $64 million between August 5 and 6. This drop in TVL was recorded amid an ongoing investigation by Chinese authorities. The TVL aggregator DefiLlama noted a decline in Huobi's TVL from $3.09 billion on July 6 to $2.5 billion at the time of reporting. Despite these claims, a spokesperson from Huobi has dismissed the rumors as fake news.
Rumors have been circulating about leadership changes at the exchange, with reports suggesting that some senior executives have left the company in recent weeks. However, it remains unclear if these departures are related to the recent speculations. social media on the platform X (formerly Twitter) denied the rumors and stated that the exchange is performing well currently.
Although the rumors point to declining TVL, Nansen's data contradicts this narrative, indicating that Huobi's net worth has slightly increased to approximately $3.2 billion. The exchange's asset allocation is primarily dominated by Bitcoin and TRX, each accounting for over 23%. reserves, Huobi allocates a significant portion to Staked USDT (stUSDT), USDT, and USDC, alongside smaller percentages to other stablecoins such as USDD and TrueUSD (TUSD).
DefiLlama's data reveals that Huobi Wallet held a total of $72 million in USDT and USDC on August 6. Despite these fluctuations, on-chain data from Nansen does not suggest any unusual capital outflows. Huobi has been facing regulatory challenges in different regions , as it was forced to halt operations in Malaysia in May due to enforcement actions by the country's securities regulator.
