Huobi Experiences Sudden 64% Spike in USDT, USDC Withdrawal Volume

Crypto analytic firm Nansen recently tracked the transaction volume of the Chinese crypto exchange Huobi Global. It revealed that in the last 24 hours, Huobi users have cashed out over $60.9 million. This figure represents over 64% of its total $94 million outflow over the previous seven days.

According to Nansen, the most withdrawn coins were USDT and USDC stablecoins from users with huge wallet balances.

In the past 24 hours, Huobi has seen a significant increase in net outflows

$60.9M* of the $94.2M* net outflow in the past week occurred in the past day alone

*Contains Ethereum, Avalanche, BNB Chain, Fantom, & Polygon flows pic.twitter.com/JV1Tg13QMY

— Nansen ? (@nansen_ai) January 6, 2023

BitRunX, a Chinese crypto enthusiast on Twitter, hinted at what could have led to the sudden high withdrawal volume. BitRunX posted that Sun Li Huobi closed the communication group with internal employees and blocked all communication and feedback channels with employees.

The Twitter user added that the action led internal employees to rebel and directly rug away user assets, with developers adding backdoor Trojan horses. They, therefore, called on Houbi users to transfer their funds off the exchange to forestall substantial financial loss.

《重要提醒》

孙割火必今天已经关闭了和内部员工沟通群，封锁了所有和员工沟通反馈通道。这很危险，接下来不排除有内部员工造反直接rug走用户资产或者程序员添加后门木马。这类事件去年在多家交易所都出现过。

火币上有资产的务必火速提现有人，没资产的要卸载火必app，防止被自动更新成带木马版本。

— BitRun (@BitRunX) January 5, 2023

Kate Li, Huobi Global’s spokesperson, said the crypto exchange would reduce its workforce by 20%. Li declared, “With the current state of the bear market, a very lean team will be maintained going forward.”

Yesterday, the crypto bot trading platform Pionex announced that due to the gradual decline in trading activity on the Huobi Exchange in recent months, its security team withdrew all of Huobi’s market-making funds.

According to the market tracker, CoinMarketCap, the 24-hour trading volume of Huobi went down by over 16%. Crypto traders exchanged only $343,292,783 worth of crypto in 24 hours, ranking Huobi down to position 16.

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