Huobi and related people have been busy refuting the rumors, with Huobi's social media head dismissing them as "baseless malicious attacks". Huobi "advisor" Justin Sun tweeted "4".
Rumors swirl that Huobi executives have been arrested, exchange is insolvent
Hong Kong crypto news outlet Techub cited two insiders when reporting on August 5 that "at least three executives" at Huobi had been detained by Chinese police for investigation. The report sparked panic, and the exchange has seen net outflows of more than $73 million in the past week. Huobi's stablecoin balances are down 33% over the same period. Investor and crypto analyst Adam Cochran tweeted of "likely Huobi insolvency", citing Binance's bulk Tether sales, paused "audit" reports, and "weird balance shifts" at the exchange.