What’s going on at Huobi? – The exchange platform undermined by a rumor

30,000 BTC Withdrawn Due To Fake News – Earlier last week a rumor began circulating that “Huobi number 2 was arrested”. Despite the publication of a denial, Crypto Investor finds himself paying the price.

Arrestation de Zhu Jiawei?

On November 2, social networks and several Chinese media relayed a rumor that Huobi’s COO, Zhu Jiawei, had been arrested by Chinese police.

The rumor, however, started from nothing. On the morning of November 2 , Zhu Jiawai was unreachable for several hours, giving rise to rumors of the arrest.

Obviously, Huobi responded within hours by posting a denial on Twitter :

“We have heard of rumors within our community regarding the arrest of a senior Huobi official by local authorities. We can confidently share that these rumors are false. ” – The tweet.

According to the platform, Zhu Jiawai was unreachable because he was on a plane to Beijing following a conference in Guizhou.

The evil is already done

Despite the publication of the denial, the damage was already done for Huobi. Indeed, many of its users took a dim view of this situation and preferred to withdraw their precious BTC from the platform.

Thus, following the rumor, more than 30,000 BTC left the platform, or $ 450 million . A phenomenon that had not been encountered since last March, during Black Thursday in cryptos .

This trend continued on November 3 and 4 with 23,000 and 12,000 BTC respectively withdrawn , for a total of 75,000 BTC in 72 hours .

A choice that seems rather Cartesian, when we know that the OKex platform suspended withdrawals last October following the arrest of its founder Xu Mingxing.

Times are tough for centralized exchanges. Whether it is Huobi, Binance which is accused of embezzlement to circumvent US laws, OKex whose deposits have been stopped since October or BitMEX which is sued by the SEC and the CFTC .