Bitcoin (BTC) in danger? – 500 million USD flowing from Huobi

Huobi is considered one of the best known and largest central crypto exchanges.

Now that rumors have spread that Chinese authorities have arrested Huobi’s COO, investors are withdrawing vast amounts of money from the exchange. In this article, we look at what exactly happened, how Huobi positions itself in response to the rumors, and what generally needs to be considered when dealing with central stock exchanges.

Another tweet from CryptoWhale also shows a massive outflow of 1k Daily Profit, which is being withdrawn from the exchange.
Rumors about the arrest of the Huobi COO

The crypto world is extremely fast moving. As a result, rumors are regularly spread dynamically and impulsively. First suspicions make the rounds via Twitter, so that there is already speculation about facts – even before they are finally clarified.

This phenomenon is both a curse and a blessing. On the one hand, bullish and euphoric news can be made quickly accessible. On the other hand, this flood of information also quickly leads to rumors that in retrospect turn out to be false reports.

Let us now see these words as a small digression and look at the current rumors around Huobi.

Rumors spread on Twitter that Huobi’s COO, namely Zhu Jiawei, had been arrested by the Chinese authorities. Jiawei himself is an extremely well-known person in China in the cryptospace industry and is therefore often referred to as Huobi’s „PR guy“.

After these rumors spread via Twitter, the central Crypto Exchange reacted quickly and wrote a statement itself. In this statement it said that it could assure in good conscience that the rumors around the arrests were false.

Bitcoin (BTC): USD 500,000,000 flows from Exchange

The stock exchange also emphasized that it uses a multi-signature system based on 15 keys. In other words, even if the rumors were true, this should not lead to a payout stop.

In spite of these security confessions, investors in the platform probably had to consider the case of OKEx.

Bitcoin and your own wallet: Don’t trust.

In the last weeks and months there have been more and more headlines again that the Chinese authorities are keeping a closer eye on crypto traders and the OTC market.

Considering that the Chinese Party (CCP for short) is planning to launch its Digital Yuan in the near future, it seems that crypto platforms are back in the spotlight.

There is, however, an important message that the current case of Huobi or even BitMEX shows: Anyone who keeps his Bitcoin (BTC) unnecessarily on central exchanges is taking an immense risk. To possess crypto currencies goes also with sole responsibility. In this sense, you should also think about the secure storage of your BTC and crypto currencies.