Justin Sun Withdraws $60 Million From Huobi Amid HT Token Flash Crash

  • On-chain data showed that about $60 million in stablecoins were taken off Huobi when HT Token lost 93% of its value.
  • Justin Sun defended his withdrawal from Huobi and also added the funds.
  • Some question the withdrawal on Twitter, while others think it’s just bad timing.

The sudden crash of the flash HT token, the exchange’s native token, on Thursday, March 9 sent shock waves throughout the crypto space – especially with The last crypto company collapsed fresh in mind.

soon to collapse, Justin Sun Withdraw ~$60 million in Ethereum stablecoins from Huobi. The money has been transferred to DeFi Aave protocol.

While the transfer of funds by Sun may seem suspicious — especially given Sun’s close association with Huobi — a Huobi Global advisor took to Twitter to explain the Stablecoins move.

“It’s just normal practice to spread the money,” Son said below a screenshot of the on-chain data showing four large transactions worth nearly $60 million.

In addition, the withdrawal of funds was not a response to the sudden crash of HT Token. Instead, it came hours before Sun tweeted an apology for the incident, which he said attributed to “the impact of leveraged liquidation on the market due to a small number of users.”

Obviously, the $60 million withdrawal may not have any dubious intentions or be related to the HT token crash, but Sun remains a controversial figure that many view with suspicion.

suspicious market

Sun’s cryptocurrency controversies came as early as September 2017 when he was allegedly I got hints from Binance CEO Changpeng ‘CZ’ Zhao about banning Chinese ICOs, and the TRX ICO closed a day before China closed the gate on ICOs.

in Dams report From The Verge, he was accused of insider trading with his team buying TRX to pump up the price. There are also allegations of securities fraud where he circulated that the BTT token was a utility token rather than a security, despite BitTorrent’s Chief Compliance Officer stating otherwise.

The sun has eviction All these allegations, but this latest suspicious or ill-timed move has also set off alarm bells across Crypto Twitter.

Adam Cochran, executive director of business development and marketing, ignited the fire when he tweeted.

Having watched the Terra stablecoin crash and crash the price, as well as the Voyager crash, FTXAnd SilverjetNot surprisingly, the crypto market is suspicious and on high alert.

on the flip side

  • While Sun removed funds before the flash crash, it has since boosted Huobi’s liquidity by sending $100 million to the exchange as a liquidity fund to protect against sharp drops in the HT coin.

Why should you bother

Although there is no evidence to suggest Sun is behaving unusually with the $60 million withdrawal, Sun’s reputation, along with disasters like the sudden crash by Huobi’s token exchange, does not bode well for crypto sentiment.

Read more about Justin Sun and his rise to prominence here: Justin Sun:
From Ripple employee to Tron founder.

Read more about how the CFTC and the SEC differ on the classification of cryptocurrencies:
CFTC Disputes SEC’s Crypto Center: Calls ETH and Stablecoins Commodities.

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