• On March 9th, a flash crash of Huobi’s HT Token caused shockwaves in the crypto space.
• Justin Sun withdrew ~$60 million in Ethereum stablecoins from Huobi around the time of the crash.
• Twitter users are suspicious of the withdrawal and believe it is related to the flash crash.
Huobi’s HT Token Flash Crash
On Thursday, March 9th, a sudden flash crash of Huobi’s HT token sent shockwaves across the crypto space. The native token of the exchange dropped almost 93% of its value in what many saw as an unexpected event.
Justin Sun Withdraws Funds
Around the same time as the collapse, Justin Sun withdrew ~$60 million in Ethereum stablecoins from Huobi to DeFi protocol Aave. On-chain data showed four large transactions amounting near $60 million taking place at this time.
Sun took to Twitter to explain that this was normal practice for fund deployment but many on Crypto Twitter remain skeptical due to his previous controversies such as insider trading with TRX tokens and alleged securities fraud with BTT tokens.
Sun has been accused of a number of controversial activities including being tipped off by Binance CEO Changpeng Zhao about a Chinese ICO ban and having his team buying up TRX tokens to pump up prices. He has dismissed all these allegations in regards to his own conduct but people still view him with suspicion when it comes to events like this latest one involving funds being withdrawn from Huobi at an interesting time.
It remains unclear whether or not there were any dubious intentions or if this was just bad timing for Justin Sun’s withdrawal from Huobi amidst their HT Token flash crash, however he will remain a controversial figure until further evidence proves otherwise.