Justin Sun Transfers $100M Stablecoins to Huobi Amid Large Withdrawals

  • The funds transferred were held in USDT and USDC.
  • Nansen reported that the last 24 hours accounted for $60.9 million.

After hearing that the crypto exchange Huobi was laying off workers, Tron founder Justin Sun shifted $100 million worth of his stablecoins to the exchange. Nansen’s analysis of the blockchain shows that the funds were transferred from Binance to Huobi, a cryptocurrency exchange in which Sun has a controlling share.

The funds transferred were held in USDT and USDC. According to Bloomberg, Sun later admitted that he had actually sent the “personal funds” since he felt doing so “shows the confidence to Huobi exchange.”

Reassuring Confidence in the Exchange

Martin Lee, an analyst at Nansen, said on Twitter that the move “might be to help with the increased withdrawals or maintain a level of confidence in the exchange.” Customers have started making big cash withdrawals.

Nansen reported that the last 24 hours accounted for $60.9 million of the $94.2 million in net outflow over the preceding week. After Sun rejected the allegations, Reuters reported today that Singapore-based Huobi, the fourth biggest digital asset exchange with a 24-hour trading volume of $371 million, will lay off 20% of its workers.

Employees have been protesting the practice of paying their wages in stablecoins after it was disclosed last week by independent crypto journalist Colin Wu. Sun and his group have emphasized several times that the rumor mill is full of FUD (fear, uncertainty, and doubt) about the exchange.

At a time when trust in digital asset exchanges is low, Huobi’s “FUD” comes as the world’s largest exchange, Binance, published a statement last month to reassure customers that its financial house is in order.

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Content writer by profession. A crypto lover and has passion for writing. Follows the developments of digital currency right from its launch, years ago.