• Huobi is facing controversy again after controversial USDT and ETH inflows.
• Tron founder Justin Sun is accused of using customer deposits for his own gain.
• On-chain analysts have linked the large USDT transfer to TUSD, a stablecoin heavily favored by Binance and Justin Sun.
Huobi’s Controversial Inflows
Huobi, one of the world’s largest crypto exchanges, has been mired in controversy since it became linked with the Tron founder Justin Sun in October 2022. Recently, two large deposits of 200 million USDT and 5,000 ETH from wallet addresses connected to Sun have stirred up fears over Huobi’s health and raised questions about its solvency.
Questions About Huobi’s Reserves
Adam Cochran from Cinneamhain Ventures Partner raised questions about Huobi’s USDT reserves on Saturday, August 5th. He suggested that Justin Sun had redirected customer funds into protocols such as JustLend to earn personal yield. This sparked speculation that these transfers could be used to line Sun’s pockets at the expense of Huobi customers.
The TRX Whale Address
On-chain analysts are unconvinced that the addresses do not belong to Justin Sun due to data gathered from PeckShield which links the TRX whale address responsible for the large USDT transfer to TUSD, a stablecoin favored by Binance and Justin Sun himself. The same address was also used for minting 38.5M $TUSD and receiving 10M $TUSD from Huobi and 1M $TUSD from Binance within six days prior to the transfer.
Justin Sun’s Response
Sun did not respond immediately when asked for comment regarding these transactions but he has been accused of using customer deposits for his own benefit without permission or authorization from them.
Huobi remains under scrutiny as insolvency rumors swirl around its business operations due to recent suspicious inflows into its platform which appear be linked to Tron founder Justin Sun himself