TronWeekly

Crypto World News

You are here: Home / Archives for Huobi

Huobi

India Issues Warning To Global Crypto Exchanges, Binance & Others At Risk

by

India’s Financial Intelligence Unit (FIU IND) has issued stern warnings to nine offshore Virtual Digital Assets Service Providers (VDA SPs), including prominent platforms like Binance, Kucoin, and Huobi. The crackdown comes as these entities have failed to register and adhere to the Anti Money Laundering (AML) and Counter Financing of Terrorism (CFT) framework.

image 104

Nine Major Crypto Exchanges In The Crosshairs

In an official press release, FIU IND revealed that compliance Show Cause Notices have been dispatched to the nine offshore VDA SPs under Section 13 of the Prevention of Money Laundering Act, 2002 (PMLA). The move is part of a broader effort to bring Virtual Digital Asset Service Providers under the ambit of the AML-CFT framework, a move initiated in March 2023.

The crypto entities targeted by FIU IND include Binance, Kucoin, Huobi, Kraken, Gate.io, Bittrex, Bitstamp, MEXC Global, and Bitfinex. These offshore VDA SPs have allegedly been operating illegally in India without conforming to the provisions of the PML Act.

The director of FIU IND has taken the matter a step further, urging the Ministry of Electronics and Information Technology to block the URLs of these entities. This aggressive measure is aimed at preventing access to the platforms that are deemed to be flouting Indian financial regulations.

The regulations, incorporated under the Prevention of Money Laundering Act, 2002, mandate that VDA SPs operating in India, both offshore and onshore, engage in activities like the exchange between virtual digital assets and fiat currencies, transfer of virtual digital assets, and safekeeping or administration of virtual digital assets, to register with FIU IND as Reporting Entities. The regulations impose activity-based obligations, irrespective of physical presence in India.

While 31 VDA SPs have complied with the registration requirements to date, the recent crackdown highlights the presence of several offshore entities catering to a significant portion of Indian users yet evading registration and falling under the AML-CFT framework.

This regulatory move aligns with India’s broader strategy to regulate and supervise the burgeoning cryptocurrency market within its borders, ensuring compliance with international standards for combating money laundering and terrorist financing. 

Related Reading | Binance Ex-Founder CZ Defies Legal Turmoil, Tops Crypto Moguls In 2023

Huobi’s Explosive Tactic: A 20% Revenue Inferno Ignites Q3!

by

Huobi, one of the leading cryptocurrency exchanges, made waves in the crypto world with its recent announcement of burning a significant number of Huobi Tokens (HT) in the third quarter of 2023. A total of 2,062,217 HT was sent into the blockchain ether, signifying a substantial event in the cryptocurrency market. The burn was made possible by allocating 20% of Huobi’s Q3 revenue, which amounted to approximately US$24.75 million. This strategic decision reveals an intriguing insight into Huobi’s financial health and its commitment to token management.

To comprehend the significance of this move, it’s essential to consider the backdrop. In the first two quarters of 2023, the exchange reported revenues of US$16.55 million and US$26.91 million, respectively. The Q3 revenue of US$24.75 million not only surpassed the first quarter but also came remarkably close to the second-quarter figure. This suggests that the exchange’s financial performance is maintaining its resilience in an ever-fluctuating market.

Huobi’s Tokenomics Commitment

The decision to burn HT reflects the exchange’s commitment to tokenomics and the well-being of its ecosystem. By reducing the supply of HT, the exchange aims to create scarcity, potentially leading to an increase in the token’s value. Additionally, this strategic move can be seen as a way to give back to the community of HT holders by enhancing the intrinsic value of their tokens.

This burn also raises questions about Huobi’s revenue model. The exchange has historically been regarded as one of the financially sound crypto platforms, and this decision might not impact its operations negatively. Nonetheless, it underscores the dynamic nature of the cryptocurrency market and the exchange’s determination to adapt to it.

In conclusion, Huobi’s burn of 2,062,217 HT in Q3 2023, funded by 20% of its revenue, has been a noteworthy event in the crypto sphere. It demonstrates the exchange’s financial stability, commitment to its community, and dedication to token economics. As Huobi continues to evolve and navigate the crypto landscape, it’s a development worth watching closely for all crypto enthusiasts and investors.

Binance CEO Offers Security Team Assistance In $8 Million HTX Hack Investigation

by

In a crypto-world whirlwind response, Binance’s CEO Changpeng “CZ” Zhao wasted no time addressing the recent $8 million hack that jolted the HTX crypto exchange, previously known as Huobi. CZ has promptly extended a helping hand by deploying Binance’s elite security team to join the relentless hunt for the perpetrators behind this digital heist.

On September 25, blockchain analytics platform Cyvers raised the alarm regarding a security breach that drained 5,000 Ether (ETH) worth $1,588 from one of HTX’s hot wallets. This incident highlights the urgent need for swift action when dealing with cryptocurrency thefts, as hackers often employ tactics such as using mixers or converting stolen assets into privacy tokens to cover their tracks.

Taking proactive steps to minimize the fallout, HTX extended an enticing 5% “white-hat bonus” amounting to nearly $400,000 to entice the hacker. The condition stipulated a seven-day window for compliance. This gesture was intriguing because the offer was distinctly conveyed in Mandarin, substantiated by a visible screenshot.

UptWTgBIijxv O0Wp4A W1ji20jDBZuL3y V7Rq917I MyeZDHOp bZ0LtdjavzejAG0FgKxfVAlUL1TkMJHc8TvyZjX45qIIdbo RStZnXoXykjAknfQYKVdkaLeV1UA Wkv2yOYowrKrfOe0P73IU
Source: etherscan.io

Binance’s CZ Insights On Huobi HTX Security

On a lighter note, CZ playfully commented on the similarity between the rebranded HTX and Sam Bankman-Fried’s FTX exchange. However, he acknowledged that the nature of the losses in both exchanges differed significantly, with HTX falling victim to a hack and FTX being associated with an alleged scam.

In response to a tweet from Tron founder Justin Sun, who also advises HTX, CZ enlisted Binance’s security team to aid in tracing the stolen funds. Sun further assured users that HTX would cover all their losses.

HTX has also enhanced its security, implementing real-time monitoring mechanisms to prevent future breaches. Although Sun denies holding a significant stake in HTX, he committed to conducting live streams in both English and Chinese to discuss exchange security.

This incident occurred shortly after another cryptocurrency platform, Mixin Network, suffered a massive $200 million hack. The breach was related to compromising a third-party cloud service provider’s database. An independent Web3 SaaS analytics platform 0xScope investigation revealed a historical connection between the hacker and Mixin Network. 

In 2022, an address linked to the hacker had received 5 ETH from Mixin and subsequently deposited it into Binance. Deposits and withdrawals on Mixin Network will only resume once vulnerabilities are confirmed and rectified. Plans to recover the lost assets for affected users have not been disclosed.

Related Reading:| Binance’s Fight for Fair Play: Petition To Dismiss SEC Lawsuit

Huobi Under Scrutiny: Allegations Of Insolvency & Financial Irregularities Emerge

by

Adam Cochran, the Managing Partner at Cinneamhain Ventures, has cast doubt on the financial stability of the Tron blockchain founder, Justin Sun, and his majority-owned cryptocurrency exchange, Huobi. Cochran alleges that Huobi may owe its customers an astonishing $2.4 billion, with questionable reserves to cover these customer deposits.

Huobi’s Reported Holdings Under Scrutiny

The accusations surfaced through a series of tweets by Cochran, who asserted that the exchange’s reported holdings are inconsistent with the data available through DeFi analytics. 

Cochran’s thread began with a bold statement, “Oh btw Huobi is probably insolvent again,” and raised significant concerns about the exchange’s financial health.

According to Cochran, Huobi claimed to possess approximately $200 million worth of Ethereum (ETH). Still, DeFiLlama data indicated holdings of less than $113 million, even after including wrapped ETH (wETH) and synthetic ETH (sETH). 

Furthermore, Huobi asserted that its users held $624 million in Tether (USDT), but DeFiLlama data revealed only $119 million USDT within the exchange. The remainder was allegedly held in a novel form known as “stUSDT.”

Cochran highlighted a peculiar aspect of stUSDT, allowing users to stake USDT or TrueUSD (TUSD) to earn stUSDT. Normally, staking operations should result in a burn, effectively removing assets from circulation. 

image 51

However, he claimed that funds from staking activities were flowing into Justin Sun’s personal addresses instead, raising suspicions about the exchange’s intentions.

Moreover, Huobi might be utilizing the underlying USDT assets to support its DeFi lending platform, JustLend, and possibly engaging in TUSD buybacks on Binance. 

This complex web of financial operations, combined with the creation of stUSDT and JustLend, led Cochran to estimate that Justin Sun might be indebted to users across the Huobi and Tron ecosystems to the tune of $2.4 billion, all while keeping users in the dark about the precarious financial situation.

The allegations raised by Cochran prompted a range of responses from the cryptocurrency community. Some questioned the accuracy of DeFi analytics tools, especially when dealing with multiple wallets, hardware wallets, and bank reserves.

However, he clarified that Huobi had reported its own assets and self-reported wallet data to DeFiLlama, suggesting that these numbers should match but were off by hundreds of millions of dollars.

Related Reading | Shiba Inu Forecast: Machine Learning Tool Foresees SHIB Price on October 1

Binance & Other Giants Navigate Uzbekistan’s Regulatory Crossroads: Report

by

Major players in the cryptocurrency industry, including Binance, Huobi, and Bybit, are in discussions to establish entities and secure licenses within Uzbekistan. This strategic move comes as the nation witnesses a burgeoning interest in digital currencies, with approximately half a million citizens currently holding cryptocurrencies. 

The anticipated surge in trading activity could see up to 50,000 active users on these platforms, generating a substantial weekly trading volume ranging from $25 million to an impressive $180 million.

However, a sudden obstacle has emerged as the websites of these global cryptocurrency exchanges find themselves inaccessible within the borders of Uzbekistan. The National Agency for Perspective Projects officially announced this development, marking a significant effect in the nation’s evolving stance on digital assets.

As of Tuesday, Gleb Kostarev, spearheading Binance’s Eastern European operations, confirmed that the exchange’s website had become unreachable for Uzbek users. The impact reverberates beyond Binance, as other prominent exchanges like Huobi, FTX, and Bybit also face the same restriction.

Binance Engages with Uzbek Authorities for Resolution

Binance, in response to the situation, released a statement revealing ongoing negotiations with Uzbekistan’s authorities. The exchange emphasized its commitment to adapting and growing within the region, positioning itself as a more traditionally regulated fintech entity in line with the Commonwealth of Independent States (CIS), a coalition of former Soviet republics.

Uzbekistan’s decision to block access to foreign cryptocurrency exchanges and over-the-counter brokers stems from the country’s regulatory framework, which prohibits citizens from engaging in crypto trading on international platforms. 

This decision aligns with a 2018 law mandating licensing for various crypto-related entities, including mining pools, exchanges, custodians, and crypto shops. At the time, the nation aimed to lure global crypto exchanges by offering attractive tax incentives.

In response to queries, the National Agency for Perspective Projects clarified that foreign exchanges still need proper licensing to operate within Uzbekistan. Currently, the sole exchange holding such a license is the local UzNEX, as reported by the news outlet Forklog.

However, the outcome of the negotiations between these exchanges and Uzbek authorities will undoubtedly shape the future of cryptocurrency trading in the country and potentially serve as a model for other nations grappling with similar challenges.

Related Reading | Binance Faces Legal Crossroads in Russia: Ready to Pull Plug

Huobi Makes Waves: First To Embrace PayPal’s PYUSD Stablecoin With Zero Fees

by

Huobi, a prominent cryptocurrency exchange, has announced its status as the pioneering platform to facilitate the launch of PayPal’s PYUSD stablecoin. Huobi has introduced a permanent zero-fee trading pair for PYUSD/USDT as part of this collaboration. 

The trading activities are slated to commence once liquidity reaches optimal levels. Notably, Justin Sun, a key figure in the blockchain realm, had previously extended an invitation to PYUSD for issuance on the TRON network.

Amidst growing anticipation, previously, Justin Sun took to Twitter, expressing his invitation to PayPal to explore issuing PYUSD on TRON. Sun emphasized the attributes of TRON, citing its exceptional speed, security, and cost-effectiveness, which are accompanied by a staggering daily transaction volume of 12 billion USD. He underscored the potential for mutual benefits within the digital payment landscape and advocated for collaboration to foster a thriving ecosystem.

A statement released by Huobi underscores the exchange’s commitment to fostering cooperative relationships with esteemed projects and institutions within the blockchain domain, with the shared goal of advancing industry development. 

This commitment is now manifested through Huobi’s pioneering support of the PYUSD stablecoin launch, coupled with the provision of the PYUSD/USDT trading pair featuring a permanent zero trading fee. 

The exchange pledges to initiate trading activities as soon as the market experiences sufficient circulation and liquidity. Traders and enthusiasts are urged to remain attentive to forthcoming announcements from Huobi regarding the opening of the PYUSD/USDT trading pair.

PYUSD, denoting PayPal’s USD-backed stablecoin, serves as a vehicle for seamless transfers and payments in U.S. dollars. Issued by the Paxos Trust Company, PYUSD boasts full backing through U.S. dollar deposits, short-term U.S. treasury bonds, and similar cash equivalents. At present, the total issuance of PYUSD has reached 26.9 million units.

Denials & Speculations Surrounding Huobi Executives

Recent reports suggesting the arrest of several Huobi executives in China have been met with a strong denial from a spokesperson for the exchange. Over the weekend, financial outlets in Hong Kong disseminated news that law enforcement authorities in China had taken away several high-ranking executives associated with Huobi. These arrests allegedly coincided with an increased outflow of assets from the exchange.

Huobi’s stablecoin-related balances have experienced a notable decline, with a 33% reduction reported over the past week, resulting in a withdrawal of approximately $49 million in stablecoins. Notably, this decline in stablecoin balances comes amidst ongoing rumors regarding the apprehension and investigation of senior executives from various offshore cryptocurrency exchanges by Chinese law enforcement.

Related Reading | PayPal’s PYUSD: Revolutionizing Payments With Fully-Backed Stablecoin Innovation

$200M USDT Shift: Justin Sun’s Involvement Disputed

by

USDT’s recent noteworthy transaction has garnered significant interest within the cryptocurrency community. A wallet address reportedly marked as Justin Sun executed a substantial transfer, moving $200 million USDT from the lending platform JustLend to the renowned exchange Huobi. This action occurs concurrently with a remarkable surge in Huobi’s USDT reserves, which have surged from around $85 million to an impressive $285 million. However, a representative from Huobi refuted the claim that the mentioned address is owned by Justin Sun.

22sec crypto sun sub videoSixteenByNine3000
Justin Sun

The transaction, which took place on the blockchain, was quickly noticed by crypto enthusiasts and analysts, prompting speculation about its implications. Justin Sun, a prominent figure in the cryptocurrency industry as the founder of TRON, has often been associated with bold and strategic financial moves. While the motivation behind this specific transfer remains unclear, some experts suggest it could be linked to arbitrage opportunities or strategic positioning in the ever-fluctuating crypto market.

Interestingly, this transfer aligns with recent developments surrounding Huobi. The exchange has been under investigation due to concerns involving its executives. As a result, users have started withdrawing funds from the platform, which has led to a significant decrease in Huobi’s reserves. However, this transaction seems to have reversed the trend, demonstrating a sudden influx of funds into the exchange.

This intriguing sequence of events raises questions about the role of influential figures like Justin Sun in shaping the dynamics of the cryptocurrency market. Sun’s moves have been known to influence market sentiment in the past, and this recent transfer might spark further discussions about his impact on the industry.

USDT Timing Debate: Coincidence or Calculated Transfer?

To delve deeper into the specifics of this transaction and its implications, analysts are closely monitoring the movements of USDT within the Huobi ecosystem. The sudden increase in USDT reserves could potentially signify renewed investor confidence in the exchange despite the ongoing investigations. On the other hand, skeptics argue that the timing of the transfer could also be coincidental, given the highly volatile nature of the cryptocurrency market.

As the cryptocurrency landscape continues to evolve, these kinds of significant transactions serve as a reminder of the market’s susceptibility to rapid changes and unexpected developments. Justin Sun’s alleged involvement in this substantial transfer emphasizes the interconnectedness of influential figures, exchanges, and the broader market sentiment.

In conclusion, the recent transfer of 200 million USDT from JustLend to Huobi by a wallet address purportedly associated with Justin Sun has sparked intrigue within the cryptocurrency community. The context of Huobi’s ongoing investigations and its subsequent increase in USDT reserves adds layers of complexity to the situation. This event underscores the role of influential figures in shaping market dynamics and highlights the need for vigilance and analysis in understanding the ever-changing cryptocurrency landscape.

Justin Sun-Backed Huobi’s Days Numbered? Troubling Links Unmasked

by

Crypto exchange Huobi is facing insolvency rumors as a result of $64 million in outflows on Aug. 5 and 6, following news that the company’s top executives are being investigated by Chinese authorities. The trading platform’s TVL has fallen by 20% as a result, going from $3.09 billion to $2.5 billion as of this writing.

Over the past two weeks, Huobi has lost at least one C-level executive, though it is unknown if the resignation is related to the Chinese probe. Then, on August 4, allegations surfaced claiming that one of its high-level execs had been detained in China as a result of the exchange’s alleged links with gambling firms.

Huobi representatives, on the other hand, have categorically disputed the accusations, calling them fake news and asserting that the exchange is “currently doing well.” Justin Sun, the founder of the TRON blockchain and the key adviser of the Seychelles-based trading platform, also released official remarks denouncing the rumors as “FUD.”

Adam Cochran, a crypto analyst and investor at Cinneamhain Ventures, originally made the doomsday predictions, stating that Huobi is “deeply insolvent” [based on statistics on USDT volumes on the exchange’s balance]. He said that the exchange’s balance is ten times lower than its client obligations and that it is steadily declining.

In addition, Cochran charged the TRON founder with fund embezzlement for allegedly supporting his other defi apps and providing a yield to encourage users to make additional deposits.

image 14 1
Justin Sun-Backed Huobi's Days Numbered? Troubling Links Unmasked 6

“Justin Sun Prop Up DeFi Apps To Attract Huobi Deposits”

Just is using the same assets in Huobi, JustLend, Poloniex, and his other apps to enrich himself, and hoping users don’t withdraw or are not informed enough to hear of the issues. So users *think* they have balances of $631M, but there is only $90M there. The rest Justin Sun is using to prop up his other defi apps, and paying a yield on it to get users to deposit more into Huobi.

The analyst further argued that even Binance has resorted to selling Tether as a result of recognizing that Sun doesn’t actually have the USDT he claims to, and if users find out, they might mass dump to get off of his exchange.

“When Binance heard that Huobi/Tron employees were being investigated in relation to actions at the exchange, they started slamming the 3CRV USDT sell into DAI to mitigate their risk. Because Huobi is deeply insolvent.”

Huobi Empowers HT Ecosystem With 1.95M Token Burn In Q2 2023

by

Huobi, the renowned cryptocurrency exchange, has recently announced its burning of a staggering 1,950,555 Huobi Tokens (HT) during the second quarter of 2023. This development comes as part of Huobi’s commitment to enhancing the value and sustainability of HT. 

By burning 20% of its revenue, which amounted to approximately $26.91 million in Q2, Huobi aims to reduce the circulating supply of HT and strengthen its market position.

image 49 2

As of July 15, 2023, the exchange has burned an impressive 298,940,224 HT. The circulating deflation rate for the quarter was calculated at 0.9066%, demonstrating the impact of the burning mechanism. The current circulating supply of HT stands at 159,153,756 HT, derived from the existing supply of 201,050,000 HT.

In a significant announcement, the exchange has revealed its plans to upgrade the HT burning mechanism. In response to community feedback and to align with industry norms, it will transition from monthly to quarterly burning. 

Huobi’s Commitment To Transparency & Improvement

This change increases transparency and allows for a more comprehensive disclosure of HT burn data. Going forward, the burn figures for each quarter will be released on the 15th of the first month of the subsequent quarter.

The HT burning mechanism allocates 20% of the exchange’s revenue toward the burning process. Its revenue comprises trading fees from various platforms, interest on loans, withdrawal fees, and revenue from different products and services. By transitioning to quarterly burns, Huobi aims to improve the transparency and effectiveness of the process.

Huobi has been making waves beyond its burning mechanism as well. The exchange has become the first member of the Hong Kong Virtual Assets Consortium (HKVAC), an organization focused on bolstering security risk management and establishing Hong Kong as a leading hub for virtual assets and digital finance. 

Additionally, the exchange has partnered with Gala Games, intending to collaborate on Web3 development and integrate with the Gala layer-1 blockchain.

Nevertheless, as the exchange continues to innovate and adapt, it acknowledges the vital role played by its community. By actively engaging with users and embracing industry best practices, Huobi remains committed to building a stronger and more prosperous future for HT. 

With the unwavering support and contributions of its community members, Huobi aims to solidify its position as a top-tier cryptocurrency exchange.

Related Reading | Bitcoin’s Resilience In Action: Bulls Record The Highest “Buy” Level At $30.2K

Huobi Crypto Exchange Faces Major Data Breach & Credential Leak

by

White hat Aaron Phillips exposed a major data breach at Huobi, one of the world’s largest cryptocurrency exchanges, that occurred in 2021. The leak involved nearly all over-the-counter (OTC) transaction information from 2017 to 2021, including some user and VIP user data and the exchange’s technical infrastructure.

According to Huobi’s response, the incident was caused by the irregular operation of personnel in the S3 barrel of the test environment of the Japanese station on June 22, 2021. 

However, the relevant user information was only isolated on October 8, 2022, after the white hat team discovered the breach. The exchange security team promptly acted on June 21, 2023, closing relevant file access permissions and fixing the vulnerability. 

They assured that all relevant user information had been deleted, expressing gratitude to the White Hat team for their contributions to Huobi’s security.

The Scope of the Huobi Data Leak

However, Aaron Phillips’ in-depth analysis sheds light on the severity of the breach and its potential consequences. The exchange had inadvertently shared a set of credentials granting write privileges to all of their Amazon Web Services (AWS) S3 buckets. 

These credentials provided full access to the company’s cloud storage, including CDNs and Huobi’s websites. This breach exposed the company’s user data and internal documents, with attackers having the potential to execute the largest crypto theft in history. 

Huobi handles over a billion dollars in daily trading volume, making its users vulnerable to massive losses if the breach had been exploited.

Fortunately, Aaron Phillips discovered the leak and reported it to Huobi, prompting them to take immediate action to secure their data. He found that the leaked credentials were active for about two years, providing attackers ample time to exploit the situation if they had discovered it earlier.

The implications of the breach were dire, as attackers could have compromised CDNs and websites, injecting malicious scripts into Huobi’s systems and impacting every user who logged into their website or app.

Moreover, the leak revealed confidential reports containing user information, particularly wealthy users known as “crypto whales.” Huobi had ranked these users based on their ability to influence market movements, further jeopardizing their privacy.

Additionally, Huobi’s over-the-counter trading database was exposed, potentially affecting millions of transactions since 2017. OTC trading is valued for its privacy, making this breach a significant privacy violation for affected traders.

In a fortunate turn of events, the white hat team’s timely intervention and Huobi’s swift response mitigated the damage. However, this incident serves as a stark reminder of the importance of robust cybersecurity practices for cryptocurrency exchanges and companies handling sensitive user data. 

Related Reading | OKX Beat Market Odds To Ink $70M Deal With Manchester City