Over $94.2 million in net outflows have occurred on Huobi’s cryptocurrency exchange. Nansen, a crypto analytics company, estimates that $60 million has been transferred out of Huobi in the past 24 hours.
Huobi has experienced a significant rise in net outflows over the last 24 hours
$60.9M* of the $94.2M* net outflow in the past week occurred in the past day alone
*Contains Ethereum, Avalanche, BNB Chain, Fantom, & Polygon flows pic.twitter.com/JV1Tg13QMY
— Nansen (@nansen_ai) January 6, 2023
Nansen also stated that a substantial portion of withdrawals were made from wallets with high balances in Tether (USDT), USD Coin(USDC), or Ether (ETH).
According to Twitter rumors, the significant increase in outflows from this exchange was caused by Huobi’s rumours of laying off employees and closing internal communications due to insolvency issues.
A spokesperson for Huobi told Cointelegraph on Jan. 6 that rumors of Huobi firing as many as 40% of employees were untrue, stating, “The planned layoff ratio is about 20%, but it is not implemented now.” The layoffs are allegedly a part of ongoing restructuring following Justin Sun’s acquisition of the firm.
In response to rumors about the exchange’s financial health and layoffs, Sun claimed that the exchange’s business was in good standing and alleged that user assets were fully protected.
Despite Huobi’s denial of these rumors, many users remain skeptical about the exchange’s future due to Sun’s antics.
Justin Sun is Huobi’s shadow holder. Justin Sun is the crypto’s most unpredictable billionaire. Justin has been sending billions in stablecoins all over the space, including into and out of Binance. Something is happening. All coins should be withdrawn from unregulated exchanges. https://t.co/zDDaNIqyl7
— Mike Alfred (@mikealfred) January 6, 2023
Related: Huobi confirms 20% layoffs but denies insolvency rumors
Leon Li, Huobi founder and majority shareholder, sold his entire stake in Huobi to a Sun-linked company in October 2022. Huobi lost several of its key executives immediately following the sale. This is thought to have been related to Huobi’s reorganization efforts.