Huobi: Manager of Bitcoin stock exchange allegedly arrested

According to rumors a Huobi manager was arrested. Despite denials, many investors are selling their Bitcoins. Then there is a mysterious tether payment at Huobi.

Huobi once again clearly stated that despite these rumors, the investors‘ money is „absolutely safe“. However, the block chain tracker @whale_alert is already reporting Huobi’s outgoing Bitcoin Loophole transfers of more than $500 million within a very short time. Although Huobi now officially operates from Singapore, it has its origins in China. Apparently the alarm bells rang for many investors after the rumors spread. But not because Robin Zhu or the trading center is accused of illegal practices.

According to unconfirmed rumors, the COO of the Singapore-based Bitcoin exchange Huobi was arrested on Monday. Huobi himself denied these rumors and claimed that Robin Zhu was on a normal business trip and would attend a meeting on Tuesday. Nevertheless, some investors did not allow themselves to be placated by this and have already started to reduce their Bitcoin deposits. The rumors are clearly reverberating, after all Huobi is one of the largest Bitcoin exchanges in the world.

The news portal Coindesk quotes Huobi in a recent news item as follows:

We can confidently say that these rumors are false. All members of Huobi’s management team have been brought to justice and have neither been arrested nor detained.

Is Huobi the focus of China’s authorities?

Rather, the background seems to be that investors fear that Huobi might cooperate with the Chinese authorities. Indeed, there have been several prominent Chinese crypto companies whose executives have cooperated with the police and investigating authorities. However, the companies did not admit this information for a long time. Apparently, many now suspect Huobi of a similar case.

In June of this year, for example, rumors about Dong Zhao, co-founder of the Chinese crypto platform Renrenbit, began to circulate. After a good two weeks, the company confirmed the news that he was assisting the police in their investigations. Since October there have been problems at the Chinese crypto exchange OKEx. Its founder, Star Xu, is said to have been taken into police custody. The platform has since suspended all payouts.

It is also irritating that large tether sums (USDT) arrived at Huobi in the same breath as Bitcoin sales. The total volume of just two transactions is over USDT 400 million. The rumors of Zhu’s arrest arose shortly after these two transfers. Since the origin of these two large sums of money is unclear, one can only speculate about the background.