This is why we can’t have nice things. Just as the crypto industry was finally getting past the fallout from the FTX mega-fraud, a new scandal is brewing—this one involving Huobi, a Seychelles-registered exchange that is one of the world’s largest. Based on what we know, it’s too early to say Huobi is going the way of FTX, but there is reason to worry.
On Friday, investor and crypto watcher Adam Cochran published a series of tweets about a big selloff of the stablecoin Tether, explaining that it has been driven by events at Huobi. According to Cochran, Huobi executives are being questioned by Chinese police, and the exchange is obviously insolvent owing in part to alleged owner Justin Sun using customers’ funds as his own piggy bank. Cochran says this led others, including Binance, to sell off Tether holdings on the exchange.
