Singapore exchange firm Huobi has come out to debunk claims that its COO Robin Zhu was arrested. Media and social media reports suggest that the COO was arrested by authorities. He is also a person of interest in an investigation regarding $400 million in exchange funds.
Huobi, however, has debunked these claims suggesting that they do not have an OKEx-esque situation. The firm – in a tweet – disclosed that none of their entire management team is detained or under arrest.
Huobi Global Is Operating Normally
We have become aware of rumors within our community about the arrest of a Huobi senior executive by local officials. We can share with confidence that these rumors are false.
— Huobi (@HuobiGlobal) November 2, 2020
Huobi classes the report as fake news, suggesting that false rumors can lead to concerns about the safety of users’ assets. Huobi confirms users assets are safe at this time.
Was COO Robin Zhu Really Arrested?
At the time of writing, it cannot be ascertained whether authorities really arrested Robin Zhu.
Moreover, claims that the COO was arrested and under investigation for $400 million cannot be substantiated. Zhu is mentioned in a series of operations involving Tether (USDT) being flagged by crypto analytics. Large sums of USDT were transferred to and from Huobi recently, arousing suspicion.
Who arrested him, where he was arrested, and when he was arrested were not disclosed. Local media sources were sighted to have details of Zhu’s arrest. However, the sources credited never mentioned Zhu.
Huobi has every right to debunk claims on social media that their COO was under arrest or being investigated. The Singaporean exchange already suffers the backlash of the fake news. CryptoQuant reveals that after Zhu’s rumored arrest, a massive BTC outflow occurred. This indicates some traders are concerned about the news, and will take their funds elsewhere, for now.
— CryptoQuant.com (@cryptoquant_com) November 2, 2020
However, a large inflow of Tether – worth $400 million – was noted from Bitfinex to Huobi hours prior. it is unclear if there is any correlation between these two events.
vote of confidence amidst the rumors. https://t.co/5X5iYIdhws
— light (@lightcrypto) November 2, 2020
Mistaken Huobi for OKEx?
One possible explanation is how the Huobi COO is mistaken for an OKEx executive. OKEx founder Mingxing Xu, also known as Star Xu, was arrested by police last month and taken for questioning.
Star Xu was arrested shortly after OKEx announced the suspension of withdrawals for crypto assets on its platform, meaning no one could get their money out.
Some officials claim the exchange is no longer affiliated with OK Group, where Xu is a senior executive. Therefore, they are not able to comment on his activities.
Update Oct 28 (1/2):
Withdrawals from OKEx are still temporarily paused. User fund security is our top priority & all user funds remain safe & unaffected. We are working hard to resume withdrawals. Please check this article for further updates: https://t.co/CAR6ngDbNO
— OKEx (@OKEx) October 28, 2020
Withdrawals on OKEx are still paused at this time. The firm announced on Monday that withdrawals pertaining to other services still work, except cryptocurrency withdrawals.