Cryptocurrency exchange Huobi appeared to have transferred 10,000 ETH to Binance and OKX deposit wallets shortly after releasing its reserves. Three Bitcoin exchanges are now under fire for allegedly sharing borrowed funds as reserves.
Centralized Bitcoin exchanges used borrowed funds for proof of reserve
Centralized exchanges are unleashing reserve assets to counter investor distrust in the wake of the FTX crash. cryptocoin.com As you follow, Bitfinex CEO Paolo Ardoino shared screenshots of the exchange’s 135 cold and hot wallets on November 11. Binance, OKX, and Kraken have decided to make their proof of reserve public. However, some anomalies found during the reviews suggest bad gaming and market manipulation.
Just two days after Crypto.com made their cold wallet public, researchers found that 320,000 ETH was sent to Gate.io on October 21, 2022. But Kris Marszalek, CEO of Crypto.com, says the funds were transferred by mistake. In his statements on Twitter, he stated that these Ethereums eventually returned to their original storage. Marszalek denies that his exchange has committed any irregularities.
Gate.io used funds from Crypto.com
Gate.io revealed screenshots of the proof of reserve on Oct. Solidity developer Shegen, on the other hand, claims that the exchange was made using funds from Crypto.com. Also, the crypto community suspects Huobi is attempting a similar manipulation. It turned out that a wallet address linked to the Huobi exchange transferred 10,000 ETH to Binance and OKX deposit wallets shortly after releasing its reserves.
After Huobi released the asset snapshot of the asset reserve, 10,000 ETH was transferred from 0xca…c3fc (Huobi 34) to Binance and OKX deposit wallets. The Huobi 34, which had 14,858 ETH at the time of the snapshot, currently has only 4,044 ETH left. https://t.co/wrphZxadBM pic.twitter.com/B2lRXMF8su
— Wu Blockchain (@WuBlockchain) November 13, 2022
Bitcoin exchange Huobi’s reserves fell to 2,4 thousand Ethereum after publication
Blockchain researcher Colin Wu pointed to transactions on Etherscan, which proved that Huobi’s latest snapshot showed 14,858 ETH. Since then, reserve assets have dropped to 2,463.5 ETH.
Huobi has yet to provide an explanation for the allegations made by the crypto community. Lin Han, the founder of Gate.io, brought out his side of the rumors. Han argued that the snapshot in question was taken on October 19, two days before Crypto.com’s accidental funds transfer of 320,000 ETH.
(1/2) https://t.co/fMCiAnAueR worked with Armanino on the Proof of Reserves using a snapshot on Oct.19 2022 2 days before https://t.co/PHnRJks7YS’s 320,000 ETH deposit to https://t.co/fMCiAnAueR.
Check the proof belowhttps://t.co/iCCKCb94kL
— Lin Han (@han_gate) November 13, 2022
Han also reiterated that Crypto.com’s funds came after the snapshot was released. Share relevant evidence to the satisfaction of the community.
The possibility of multiple crypto exchanges working together to manipulate investor funds has forced the community to be cautious until an official announcement. Huobi has not yet responded to the urine that has been raised. After the recent events, the cold wallet information of central exchanges is becoming more transparent. This allows investors and researchers to further examine the history of stock market operations. Binance was one of the first exchanges to reveal wallet addresses. He stated that this is important for awareness:
Our goal is to allow those who use our platform to be aware and make informed decisions that fit their financial goals.
