Huobi Exchange Denies Rumors that the COO Was Arrested

News / 03.11.2020

October saw several arrests of top executives of cryptocurrency exchanges, and the new month has seemingly continued the trend. 

Yesterday, rumors across the crypto community claimed that a senior official at popular cryptocurrency exchange Huobi was arrested in a police investigation.

Although Huobi is based in Seychelles, it is led by Chinese executives. Unconfirmed sources claimed that the arrested official was Huobi’s COO Zhu Jiawei, the second key player. 

Today, a Chinese report alleged that the reason for the arrest is similar to OKEx’s ongoing probe. Huobi and OKEx are two of China’s largest crypto exchanges in spot trading and derivatives contracts. 

Last month, reports emerged that OKEx founder, Star Xu, was arrested by local authorities in a regulatory probe. Following the arrest, the exchange abruptly halted services, including withdrawal requests, because Xu was one of the exchange’s private key managers. Although OKEx has resumed trading services, traders cannot pull out their funds as withdrawal remains closed.  

The report claims that Huobi had already made plans after Xu’s arrest to prevent the saga that happened with OKEx.

Massive Transfers on Huobi

As the rumors about the arrest circulated on social media, Whale Alert caught multiple large deposits and withdrawals on Huobi. 

According to the popular crypto tracking service, more than $413 million worth of USDT was transferred to Huobi in different transactions. Subsequently, a total of 19,999 bitcoin (appr $266 million) were withdrawn from the exchange, with each transfer carrying 2,000 BTC.

users are withdrawaing funds from huobi exchange following report about investigation

Huobi Denies Rumors

Meanwhile, the exchange immediately took to Twitter to deny the rumors, saying that the reports are false and that “Huobi Global is operating normally.” 

“We have become aware of rumors within our community about the arrest of a Huobi senior executive by local officials. We can share with confidence that these rumors are false,” the exchange said.

As Whale Alert continued to pick large transactions related to Huobi, the exchange later issued an official report to reiterate that all is well and funds are safe. 

“We are currently operating normally, user assets are safe, and trading, deposits, and withdrawals are operating as expected,” the report reads. 

Mandy Williams joined the crypto space in 2016, and since then she has been learning and writing about cryptocurrencies and blockchain technology.