According to Wu Shuo, the community has recently raised questions about Huobi’s declining asset reserves and the use of stUSDT funds. For the former, Huobi responded that it was because the data website did not update the stUSDT address in time; for the latter, Huobi presented Bank Statements for purchasing treasury bonds.

The document shows that as of August 6, Huobi purchased 432 million + $72 million in liquidity assets, corresponding to the supply of stUSDT on TRON and Ethereum mainnet.

The specific purchase path is: Huobi cold wallet TDToUxX8sH4z6moQpK3ZLAN24eupu2ivA4 pledges USDT in exchange for stUSDT, and USDT eventually flows to Binance and Bitfinex through JustLend and is traded as TUSD and USDC (Sun Yuchen said the reason for choosing this path is that it can save 10bps of handling fees), and then redeemed for US dollars to purchase treasury bonds.

Related: DeFi analysts express concerns about Huobi’s solvency, saying $USDT assets were misappropriated

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