Recently, the cryptocurrency exchange Huobi has been reported to have executives being investigated by Chinese authorities, and the exchange has seen an outflow of $64 million from August 5 to 6. Rumors of the arrest of Huobi's leadership began on August 4, as authorities are tightening control over cryptocurrency exchanges in mainland China. A Huobi spokesperson called this fake news. However, according to Cointelegraph, at least one C-level executive has left Huobi in the past few weeks, and it is unclear whether the departure is related to China's investigation.

In addition, Huobi is also facing solvency issues. Fintech executive and angel investor Adam Cochran pointed out that Huobi may be insolvent due to inconsistent Tether (USDT) holdings. According to DefiLlama data, the total USDT and USDC in Huobi's wallet is only $72 million. Huobi has not yet responded to clarify the bankruptcy rumors and the discrepancies between on-chain data and its audit report. Previously, Huobi's business in Malaysia was also closed in May due to enforcement actions by local regulators.