Huobi Experiences Sudden 64% Spike in USDT, USDC Withdrawal Volume

• Nansen data reveals Huobi users have cashed out over $60.9 million within 24 hours.
• The figure represents over 64% of its total $94 million outflow over seven days.
• The 24-hour trading volume of Huobi went down by over 16%.

Crypto analytic firm Nansen recently tracked the transaction volume of the Chinese crypto exchange Huobi Global. It revealed that in the last 24 hours, Huobi users have cashed out over $60.9 million. This figure represents over 64% of its total $94 million outflow over the previous seven days.

According to Nansen, the most withdrawn coins were USDT and USDC stablecoins from users with huge wallet balances.

BitRunX, a Chinese crypto enthusiast on Twitter, hinted at what could have led to the sudden high withdrawal volume. BitRunX posted that Sun Li Huobi closed the communication group with internal employees and blocked all communication and feedback channels with employees.

The Twitter user added that the action led internal employees to rebel and directly rug away user assets, with developers adding backdoor Trojan horses. They, therefore, called on Houbi users to transfer their funds off the exchange to forestall substantial financial loss.

Kate Li, Huobi Global’s spokesperson, said the crypto exchange would reduce its workforce by 20%. Li declared, “With the current state of the bear market, a very lean team will be maintained going forward.”

Yesterday, the crypto bot trading platform Pionex announced that due to the gradual decline in trading activity on the Huobi Exchange in recent months, its security team withdrew all of Huobi’s market-making funds.

According to the market tracker, CoinMarketCap, the 24-hour trading volume of Huobi went down by over 16%. Crypto traders exchanged only $343,292,783 worth of crypto in 24 hours, ranking Huobi down to position 16.