Cryptocurrency exchange Huobi experienced a net outflow surpassing $73.3 million this past week.
This development coincides with reports of several of its top executives being detained by authorities in China, The Block reported.
By 4:30 p.m. HKT, the exchange registered token outflows amounting to $505.9 million against inflows of $432.5 million in the past week.
This resulted in a net outflow of approximately $73.3 million, as per the insights provided by blockchain analytics company Nansen.
The rate of outflows seems to be intensifying. Nansen’s data reveals that in the preceding 24 hours alone, Huobi had a net outflow of $32.9 million.
Additionally, the exchange’s stablecoin reserves have decreased by 33%, settling at $99.47 million over the week.
Hong Kong-based Techub News reported that three top Huobi officials were recently apprehended by Chinese law enforcement for further inquiry.
Jiayin Xie, who oversees social media for Huobi, mentioned that Huobi was being “invited to tea” annually.
In China, the term “drinking tea” is colloquially understood to mean being called in by the police or security agencies for questioning.
“Faced with these baseless malicious attacks, I feel deeply worried,” said Xie. “After some thought, perhaps this is the unavoidable thorny path we must tread upon as we journey back to the top three.”
Separately, Huobi advisor Justin Sun tweeted the number “4” on Sunday.
This term, popularized by Binance (CRYPTO: BNB) leader Changpeng Zhao, is often used in the crypto sphere to address situations filled with FUD (fear, uncertainty, and doubt).
Sun also shared Xie’s prior tweet, which dismissed the circulating rumors.
“Digital currency exchange Huobi said it plans to reduce its global headcount by about 20%, in the latest round of layoffs to hit the beleaguered cryptocurrency industry,” said CNBC. Huobi has completed a proof of reserves review that shows its total assets now stand at $2.9 billion and match the number of funds deposited by users, Sun told CNBC.
“The Seychelles-based company is one of the largest crypto exchanges globally, handling about $370 million of trading volumes on a single day, according to data from CoinGecko.”
Produced in association with Benzinga
Edited by Judy J. Rotich and Priscilla Jepchumba
