Known for his cryptocurrency comments, Adam Cochran claimed that Huobi is in a difficult situation due to liquidity problems and especially Justin Sun’s moves.
Although the crypto money market has been pessimistic about price recently, it continues to maintain its place on the agenda. In particular, the claims made for exchanges and on-chain analyzes darken the atmosphere in the market. After the rough roads of Binance and Coinbase, Huobi is now on the radar.
Popular name on crypto, Adam Cochran, claimed that Huobi is on the edge of the abyss and could put its investors in a difficult position. Justin Sun has implicitly responded to Cochran’s allegations.
Justin Sun, Huobi and Adam Cochran Triangle
In the past days, there have been various news feeds on the popular stablecoin product USDT. Crypto commentator Adam Cochran specifically targeted Huobi over its USDT reserves. Cochran claimed that the exchange’s client assets are not at the level they appear.
Cochran, who made harsh claims with data on Twitter, stated that Justin Sun manipulated many crypto organizations in order to get richer. Cochran claimed that Sun is using client assets through moves on Huobi, JustLend and Poloniex, ensuring that clients do not withdraw their assets from these crypto entities.
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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.
These users are going to get badly wrecked when it comes crashing down.
— Adam Cochran (adamscochran.eth) (@adamscochran) August 6, 2023
In addition, Cochran wrote that Huobi assets are less than the amount shown. He pointed out that this could cause a liquidity problem and a major collapse like FTX could occur. Cochran stated that Huobi executives and Tron employees went through police interrogation.
Cochran’s most notable claim was for Huobi’s USDT assets. Cochran stated that the exchange shows that it holds more than $600 million USDT, but the exchange has $90 million in USDT assets. According to the crypto expert, this means a very difficult process for customers.
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So users *think* they have balances of $631M in Huobi, 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.
— Adam Cochran (adamscochran.eth) (@adamscochran) August 5, 2023
Cochran stated that Huobi has half a deficit in its liabilities for customer assets, and stated that the only consistent asset management of the exchange is on the BTC side.
Tron founder and Huobi supporter Justin Sun was quick to respond to these allegations. However, Sun shared a veiled message. Sharing on Twitter, Sun wanted the FUDs to be ignored. Sun stated that Huobi and Tron act with the vision of continuous improvement and work for a stronger future.
https://twitter.com/justinsuntron/status/1688396464417120256
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