• On March 9, Huobi’s native token HT Token had a sudden flash crash of 93%.
• Around the same time, Justin Sun withdrew $60 million in Ethereum stablecoins from Huobi.
• Justin Sun defended his withdrawal from Huobi by saying it was normal fund deployment, but many remain skeptical.
Justin Sun Withdraws Funds From Huobi
On March 9, Huobi’s native token HT Token suffered a sudden flash crash of 93%, sending shockwaves around the crypto space. At roughly the same time, Justin Sun withdrew ~$60 million in Ethereum stablecoins from Huobi. The funds were moved to DeFi protocol Aave. This sudden move has caused some to speculate as to why he would do so at such a critical moment–especially considering his close affiliation with Huobi.
Sun Defends His Withdrawal
Justin Sun took to Twitter to explain the movement of the Stablecoins and defend himself against any suspicions that may arise due to it. He said “It is just normal practice of fund deployment.“ Additionally, he clarified that the withdrawal happened hours before he issued an apology for the crash on Twitter, attributing it to “The impact of leveraged liquidation on the market caused by a few users.“
Twitter Reacts To Suspicious Move
Despite Sun’s explanation for his actions, many are still skeptical about what actually happened and have voiced their opinion on Twitter. Business Development and Marketing Executive Adam Cochran tweeted „Ok… shit is going to start actually getting real when Justin is getting his stables out“. Moreover, this isn’t the first time controversy has followed Justin Sun as there are allegations of insider trading with his team buying up TRX tokens and also securities fraud where he spun that BTT was a utility token–not a security–despite BitTorrent’s compliance officer saying otherwise.