Over the last weekend between August 5-6, crypto exchange Huobi witnessed massive outflows worth $64 million amid rumors of Chinese authorities investigating its executives and the fears of possible insolvency.
Amid the ongoing rumors, the total value locked (TVL) on the exchange dropped significantly to $2.5 billion, from $3.09 billion last month. There were rumors that the leaders of the exchange were arrested in China on August 4. The rumors suggested that this was because of an investigation related to the exchange’s involvement with gambling platforms.
It seems that authorities in China are getting stricter with cryptocurrency exchanges. Also, one top executive has recently left the exchange, but it’s not clear if it’s connected to the investigations in China.
There are allegations that the crypto exchange may be facing financial problems. Fintech executive and angel investor Adam Cochran pointed out some inconsistencies in the exchange’s Tether (USDT) holdings.