Huobi Global exchange has come up with a counterclaim after reports emerged that its Chief Operating Officer (COO) Robin Zhu was under investigation by the Chinese police.
As reported by Blockchain.news, Zhu’s arrest came after a series of transactions involving Tether (USDT) withdrawals up to an amount of 454,377,921 USDT were made.
As reported, the arrest suggests that the Chinese government remains unrelenting in their clampdown of illegal activities, particularly cryptocurrency-related crimes. However, Huobi has asserted via the firm’s official Twitter handle that the report is false, suggesting that neither Zhu nor the exchange were under investigation despite being it being reported by multiple sources. The exchange tweeted:
“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.”
The exchange’s move appears to be a strategy to prevent panic from spreading among customers, who might be poised to make withdrawals of their holdings on the exchange, which may affect the stability of the crypto exchange. More news is anticipated about the arrest of the COO.
Crypto exchanges in Asia flagged by authorities
Major cryptocurrency exchanges in Asia, particularly in China and South Korea, have come under the radar of authorities due to money laundering financial crimes. Besides the currently reported clampdown of Huobi, Bithumb, a South Korea based exchange was raided by the South Korean Police twice over the controversial BXA Token Sales through an Initial Coin Offering (ICO).
The entire investigation faced by the Bithumb exchange forced it to give itself up for sale.
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