The events surrounding HTX (formerly Huobi) are happening rapidly. Just this morning BTC-ECHO received news that the company led by Justin Sun had fallen victim to a hack. 5,000 Ether worth around $7.9 million are said to have been lost. One of the exchange’s hot wallets had been hacked. As it now turns out, this incident was preceded by serious allegations.
Bankruptcy allegations against HTX boss Justin Sun
There are currently rumors circulating that the stock exchange could be insolvent. Like Adam Cochran, general partner at venture capitalist Cinneamhain Ventures, on Twitter executesthe official figures on HTX funds do not match the actual ones.
HTX claims to hold $200 million in Ether (ETH). According to data from Defillama, only $113 million was stored in the crypto exchange’s wallets.
Cochran discovered an even larger difference in the (alleged) Tether holdings. Here HTX claims to have 624 million USDT, while only 119 million US dollars can be found on the exchange. But the accusations go even further: Cochran accuses Justin Sun of using USDT from exchange users to exchange it for stUSTD, only to then withdraw it from the protocol and thus artificially increase his assets.
Using this system, Justin Sun is said to have “borrowed” a total of $2.4 billion in customer funds. It is questionable whether he will be able to repay this – if the allegations are true.
Justin Sun has not yet commented on the allegations. When it comes to the hacks, he tries to be reassuring. On
Suspicions are increasing
Similar rumors about Justin Sun and his crypto exchange emerged back in August of this year. Cochran had already made allegations at this point. The official stock market figures did not match the verifiable ones. However, shortly after these allegations emerged, stocks had equalized again. Something similar seems to be happening now. The 5,000 ETH from the hack corresponds exactly to the difference between the official and confirmed Ether holdings that Cochran discovered.
In addition, reports surfaced in August that the exchange’s executives had been arrested in China. However, the company denies these rumors. To date there is no clear confirmation.
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