*warning* Huobi insolvency rumours

[hugeblack]

I was planning to try it today or tomorrow as an alternative to OKX, frankly, and after all the years I used OKX and did not find any problem, but the market taught us to take any rumor seriously, especially since this platform works from Seychelles and it will become almost impossible for you to be able to sue them or get your money back.

It's not the first time I remember a few weeks ago there were similar rumors, I don't know if it was Huobi or not, I'll update it as soon as I remember it.

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[Little Mouse]

According to the latest news, Justin Sun inject a ton of money into Huobi recently to help solve this issue. Let's see if that will work out or not.

Can you please share a source of this news? My bad! I'm not following any news lately due to having a busy time in real life. If I can remember correctly, when FTX collapsed, Justin Sun was trying to do the same as you claimed for Huobi. That would be interesting! This guy is involved with heavy manipulation in the cryptocurrency space. He has been accused of being involved in a pump and dump scheme.
If your claim is true, I'm sure Houbi is going to follow FTX lol. I'm now confused about whether Justin Sun is doing good for the community or the biggest fraud  

[stompix]

Overall, i think we should not panic and do not recommend others to withdraw there funds until they make some announcements because such panic and quick withdrawals will left that exchange no other choice but bankrupt only.

Are you for real?
Look in your url bar, this is Bitcointalk, not Banktalk!
The whole thing of not your keys, not your coins, be your own bank, do they ring a bell?
Seriously, you're advising people to keep their funds on an exchange that might be insolvent? And screw the rumors, even if they are not real, one should never do this at all!
Furthermore, why would an exchange go bankrupt if people withdraw their coins from it, the exchange should simply send the coins to their rightful owners and continue operating with the ones that don't do so, the only case where it would go bankrupt would be if they're playing with a 5-10% fractional reserve thing which is another red flag column!

Again, I'm asking seriously as one can, do you realize what you're saying or are you actually one of those gullible fools that believe in all that crap like #safu and "4" and other bs guys like CZ and SBF and Karpeles were each one by one claiming?

I can't agree more on this and i do know now that the best practise us to withdraw funds as fast as possible and i should not say that but i was also in confusion that if we all will try to withdraw funds will it not bankrupt it? So i should change the tone back in my post but i made mistake.

Usually, it's a good thing to test your brakes before you go 300km/h on the autobahn! Or even better, not going 300km/h at all!
And no, I don't get the mistake thing! You've been around here so much one thinking more of the poor bankrupt exchange after a bank run than the security of one's coins makes no sense.

[Faisal2202]

Usually, it's a good thing to test your brakes before you go 300km/h on the autobahn! Or even better, not going 300km/h at all!
And no, I don't get the mistake thing! You've been around here so much one thinking more of the poor bankrupt exchange after a bank run than the security of one's coins makes no sense.

I will keep your advice in mind maybe at that time i might be not thinking straight. hehe. But thanks to all members for correction and i just edited my statement made in my first reply. I didn't meant to advice anyone to keep there funds in there instead i myself intend to learn from those statements weather that act of withdrawing would be good or not but now i know the truth. Yeah i admit that i am around here for some time but unfortunately half of that time i wasted in bounties and didn't intend to learn the basics of crypto. But even though i am a senior member here i consider my self a student all the time and try to learn things and i accept my mistake.

[virasog]

According to the latest news, Justin Sun inject a ton of money into Huobi recently to help solve this issue. Let's see if that will work out or not.

Can you please share a source of this news? My bad! I'm not following any news lately due to having a busy time in real life. If I can remember correctly, when FTX collapsed, Justin Sun was trying to do the same as you claimed for Huobi. That would be interesting! This guy is involved with heavy manipulation in the cryptocurrency space. He has been accused of being involved in a pump and dump scheme.
If your claim is true, I'm sure Houbi is going to follow FTX lol. I'm now confused about whether Justin Sun is doing good for the community or the biggest fraud  

Justin Sun is the sort of person who always tries to remain in the news, He was there to help FTX but never help. Similarly, he may be willing to save Houbi too by saying such things to remain popular in the news, but when it comes to actual 0n ground helping, you will find  Justin Sun and tron foundation nowhere.

By the way, if Huobi exchanges also become bankrupt and/or scam exits, this will be another major set back for the crypto market and again we may see another temporary dump in the market, however due to halving hype. do not expect the market to remain down for a longer period.

[pawel7777]

I will keep your advice in mind maybe at that time i might be not thinking straight. hehe. But thanks to all members for correction and i just edited my statement made in my first reply. I didn't meant to advice anyone to keep there funds in there instead i myself intend to learn from those statements weather that act of withdrawing would be good or not but now i know the truth. Yeah i admit that i am around here for some time but unfortunately half of that time i wasted in bounties and didn't intend to learn the basics of crypto. But even though i am a senior member here i consider my self a student all the time and try to learn things and i accept my mistake.

No worries. We all make mistakes and learning is a constant process. I feel you had good intentions and just confused centralised crypto exchange with a classic fiat banking. The latter allows banks to operate a fractional reserve system, so even a "healthy" banks could go bankrupt if a panic kicks in and too many people rush to withdraw (aka "bank run"). In such case, advising people not to panic and stay calm would make some sense.

[Z-tight]

Can you please share a source of this news? My bad! I'm not following any news lately due to having a busy time in real life. If I can remember correctly, when FTX collapsed, Justin Sun was trying to do the same as you claimed for Huobi.

This is one source of that news: https://www.google.com/amp/s/decrypt.co/118578/justin-sun-moves-100m-stablecoins-huobi?amp=1
But it isn't recent news, it was at the beginning of the year when some of Huobi's persistent problems resurfaced and they had to cut down workers and people started withdrawing their funds. People like Sun would do anything to build people's trust so that they can leave their money in the exchange. Pumping his money in is just pure drama and it won't stop the exchange from collapsing if the "bank run" continues.

I'm now confused about whether Justin Sun is doing good for the community or the biggest fraud 

The latter surely, they call everything fud until people actually lose their money, that is downright malicious in my honest opinion.

[dansus021]

Damn Just read your first url and found out twitter discussed about Justin Sun and Huobi

basically, Justin sun creating another wrapped version of USDT what the fuck is going on to get more user and the yield of the app get from the Huobi User. The wrapped token is a nasty business in my opinion, people can basically create a wrapped of the wrapped of original coin.

I hope this is just a rumor and people start to be aware not to hold a big chunk of their money there. you guys should check this link regulary https://www.geckoterminal.com/proof_of_reserves/exchanges/huobi

[o_e_l_e_o]

I hope this is just a rumor and people start to be aware not to hold a big chunk of their money there. you guys should check this link regulary https://www.geckoterminal.com/proof_of_reserves/exchanges/huobi

I've said this many times before, but proof of reserves without proof of liabilities is utterly meaningless.

So what if Huobi have $5 billion in assets? What if they are supposed to have $10 billion? What if you add up the value of all the accounts on their platform and it comes to $10 billion? What if they have a few outstanding loans of a few billion each? What if they owe a few billion to some other crypto company, or some investors, or whatnot?

Assets without liabilities means nothing. They could have $100 billion in assets and still be insolvent and running a fractional reserve system if they have more than that in outstanding liabilities.

Exchanges know this. If they deliberately post "proof of reserves" and make absolutely zero mention of their liabilities, then they are deliberately trying to obfuscate something that they don't want the public to know about. Expect the worse. Withdraw your coins.

[dansus021]

I've said this many times before, but proof of reserves without proof of liabilities is utterly meaningless.

So what if Huobi have $5 billion in assets? What if they are supposed to have $10 billion? What if you add up the value of all the accounts on their platform and it comes to $10 billion? What if they have a few outstanding loans of a few billion each? What if they owe a few billion to some other crypto company, or some investors, or whatnot?

Assets without liabilities means nothing. They could have $100 billion in assets and still be insolvent and running a fractional reserve system if they have more than that in outstanding liabilities.

Exchanges know this. If they deliberately post "proof of reserves" and make absolutely zero mention of their liabilities, then they are deliberately trying to obfuscate something that they don't want the public to know about. Expect the worse. Withdraw your coins.

F*** if that happens it could be even worse. Yes we need proof of liabilities too because the companies can have only 5% of their user fund right.
I know that some people hate Centralized Exchange but the CeX should make crypto users grow not steal money from their users.

If something like this keeps happening then there will be no trust from Users and Crypto regulation will be more tight than this.
I hope Huobi knows what they are doing. at the end of the day, they should be able to cover their business from the CeX fee.

[o_e_l_e_o]

I know that some people hate Centralized Exchange but the CeX should make crypto users grow not steal money from their users.

They should, yes, but centralized exchanges have a long history of scamming their users, charging outrageous fees, locking accounts, seizing coins, helping themselves to users' money, and so on. You shouldnt trust them for a second.

If something like this keeps happening then there will be no trust from Users and Crypto regulation will be more tight than this.

Centralized exchanges will only ever become more regulated. No government is ever going to ease up on the regulations. If you use centralized exchanges, then you should expect worse and worse service and more and more rules over time.

Thankfully there are more decentralized options, and more advanced decentralized options, than ever before

[hugeblack]

I've said this many times before, but proof of reserves without proof of liabilities is utterly meaningless.

Some countries force platforms to deposit 25% of customer funds in a third-party wallet/fund that users can be compensated from it, but without listing these platforms on the stock exchange, it is difficult to even verify the validity of the liabilities.
They can claim and provide records of all assets but unless they are audited by a third party it makes no sense, these assets may not be cryptocurrencies.

The concept of proof of reserves emerged after what happened to FTX. It is a way to give clients a false feeling that their deposits are safe.

[o_e_l_e_o]

Some countries force platforms to deposit 25% of customer funds in a third-party wallet/fund that users can be compensated from it

So... they have to keep a small fraction of all deposits in reserve?

It's almost as if all centralized exchanges should have 100% of customer funds in reserve at all times. You deposit, you trade, you withdraw. The only reason an exchange would run a fractional reserve system is if they are helping themselves to your money and spending it without your knowledge.

They can claim and provide records of all assets but unless they are audited by a third party it makes no sense, these assets may not be cryptocurrencies.

Or just do what the likes of Binance and Tether did, and borrow/print a few billion out of thin air the day before the audit to make everything look fine! Not shady at all.

[SamReomo]

This is the sad truth. After Voyager collapsed, there were warnings everywhere to withdraw all your coins. And yet loads of people lost everything when Celsius collapsed a week later. And again when BlockFi collapsed. And again when FTX collapsed. And loads of people will still lose everything when Huobi or Kucoin or Binance or whoever collapse next.

This time they will lose more than our imagination because if any of those exchanges collapse then the amount of damage will be very intense for the users who trust custodial wallets blindly and are very lazy that they don't create their own wallets to and move their Bitcoin into those wallets.

Ignore what is or is not being said and get your funds in to your own wallet before it is too late.

Yes, that advice is the best one! Just ignore the words of all those exchanges and move your funds into your own wallets as soon as possible. It's always better safe than sorry and if someone doesn't move the funds now then he/she will have to bear the consequences of his/her arrogancy.

[bbc.reporter]

Some countries force platforms to deposit 25% of customer funds in a third-party wallet/fund that users can be compensated from it

So... they have to keep a small fraction of all deposits in reserve?

It's almost as if all centralized exchanges should have 100% of customer funds in reserve at all times. You deposit, you trade, you withdraw. The only reason an exchange would run a fractional reserve system is if they are helping themselves to your money and spending it without your knowledge.

They can claim and provide records of all assets but unless they are audited by a third party it makes no sense, these assets may not be cryptocurrencies.

Or just do what the likes of Binance and Tether did, and borrow/print a few billion out of thin air the day before the audit to make everything look fine! Not shady at all.

If I remember correctly, Bitfinex did something similar. After they were hacked, I reckon they issued tokens for their users to hold until they can pay them in full.

On the rumor about Huobi, the best advice is to withdraw all of your funds and never trade there again until confirmed safe. However, I speculate that his excellency Justin Sun might survive in the cryptospace longer than CZ, Barry and Brian. It will be him vs. Jesse on 2030.

[o_e_l_e_o]

If I remember correctly, Bitfinex did something similar. After they were hacked, I reckon they issued tokens for their users to hold until they can pay them in full.

Absolutely. Bitfinex and Tether are the same company. After Bitfinex had its assets seized for fraud and money laundering, Tether printed 700 million USDT out of thin air and handed it to Bitfinex so they could keep operating and not collapse. Imagine being guilty of fraud, printing almost a billion dollars out of nothing to bail yourself out, and yet still people continue to deposit their coins to your platform and continue to buy and hold your centralized stablescamcoin. And don't forget that Tether also admitted multiple times in court that USDT is not fully backed up 1-to-1. It's literally a fractional reserve scam, ran by fraudsters, which prints more out of thin air for their own benefit. Yet people call it "stable".

[bbc.reporter]

If I remember correctly, Bitfinex did something similar. After they were hacked, I reckon they issued tokens for their users to hold until they can pay them in full.

Absolutely. Bitfinex and Tether are the same company. After Bitfinex had its assets seized for fraud and money laundering, Tether printed 700 million USDT out of thin air and handed it to Bitfinex so they could keep operating and not collapse. Imagine being guilty of fraud, printing almost a billion dollars out of nothing to bail yourself out, and yet still people continue to deposit their coins to your platform and continue to buy and hold your centralized stablescamcoin. And don't forget that Tether also admitted multiple times in court that USDT is not fully backed up 1-to-1. It's literally a fractional reserve scam, ran by fraudsters, which prints more out of thin air for their own benefit. Yet people call it "stable".

It is head shaking that presently bitcoin maximalists like Samsung Mow and the host of What bitcoin did podcast are in support of Tether. They spread this storyline that people need it, however, we do not need it. I remember before 2017 when all of what was trading in the cryptospace were priced in BTC and only bitcoin was traded in USD. I am not quite certain when Tether began invading the cryptospace markets.

Also, agreed on being a fractional reserve. I have been saying this in the forum on deaf ears in my Tether big short thread. What can be fractionalized will be fractionalized especially if there is not enough regulation. What we presently have is a fractionalized reserve scam, Tether operating on another fractionalized reserve scam, fiat hehehehee.

[Z-tight]

and the host of What bitcoin did podcast are in support of Tether. They spread this storyline that people need it, however, we do not 
~~~~
I am not quite certain when Tether began invading the cryptospace markets.

They succeeded in giving people a false sense of security and stability that their funds are pegged 1-to-1 to the usd and backed by their reserves, and so people can convert their 'risky' crypto or devaluing fiat currencies into usdt and save its value. But we all know usdt is not totally backed 1-to-1 and let's say a 'bank run' happens right now, they'll immediately suspend withdrawal because they surely cannot handle all of it.

What we presently have is a fractionalized reserve scam, Tether operating on another fractionalized reserve scam, fiat hehehehee.

Just like most centralized exchanges, but guess what? People still trust them and they think their funds are safe when they deposit it into these platforms or convert it into scam stable coins. If after all the recent events that has happened people still believe there are 'special' centralized exchanges that are too big too fail, then you'll understand that people will never stop losing money to fractional reserve scam.

[bbc.reporter]

@Z-tight. On centralized exchanges similar to the size of Binance in the cryptospace, I reckon they are giving a service to onramp and offramp whales in and out of the cryptospace. They have no choice and need to accept the risk. Small minnows however, should be okay with DeFi and small exchanges that do not ask for KYC. It is only a different type of risk.