CoinMash - Justin Sun, the founder of Tron and the owner of crypto exchange Huobi, moved about $100 worth of funds to the exchange amid controversy around reported layoffs.
According to Martin Lee from Nansen, the crypto mogul transferred his personal funds from Binance in USDT and USDC stablecoins.
1/ Justin Sun withdrew $100M in stables from Binance and deposited them into Huobi50M in USDC and USDTMight be to help with the increased withdrawals or maintain a level of confidence in the exchangeSource: @nansen_ai pic.twitter.com/PnbJxYJ0M3— Martin Lee | Nansen (@themlpx) January 6, 2023
Earlier this week, reports broke out that Huobi is cutting up to 40% of its staff and asking its employees to take salaries in stablecoins after closing internal communication.
This had stirred insolvency rumors, leading to net outflows of approx $60 million from the exchange in just 24 hours, according to Nansen. On Friday, Huobi’s HT token fell around 11%, and Tron’s native token, TRX, tumbled about 8%, according to Coingecko data.
In response, Sun had claimed that the rumors were untrue and that the company’s business was in good standing, with all of its customer funds well protected.
However, soon after, a Huobi spokesperson confirmed that the exchange would cut 20% of its staff, contrary to Sun’s statements.
Due to this unruly situation, users remain skeptical of Huobi’s future.
It is believed Sun’s transfer of funds is an attempt increase the level of confidence around the exchange.
Huobi's shadow owner is Justin Sun. Justin Sun is perhaps the most erratic billionaire in crypto. Justin has been sending billions of dollars of stablecoins around the space, including in and out of Binance. Something huge is afoot. Withdraw all coins from unregulated exchanges. https://t.co/zDDaNIqyl7— Mike Alfred (@mikealfred) January 6, 2023
In Oct., one of Sun’s companies, About Capital, acquired a majority stake from Huobi’s founder Leon Li. Later, Sequoia China and ZhenFund also sold their Huobi holdings to the same company.
However, Sun had kept his name away from the deal because of regulatory scrutiny from China, which banned cryptocurrency trading and mining in 2021.
This article was originally published by our partners at Coinmash
