Protos staff have discovered large holes in the cryptocurrency reserves of the HTX exchange, owned by Justin Sun.
Experts used the trading platform’s official tool for checking digital asset holdings, uploaded to GitHub by user huobiapi (HTX was formerly known as Huobi). After reviewing the data obtained using this tool, the experts determined that:
- Over half of the Bitcoin held by HTX is in the form of wrapped tokens issued on the blockchain. TRON (TRX), an exchange created by Sun Poloniex, which has not confirmed its reserves;
- Real Ethereums make up only 8,8% of ETH reserves, with the remaining 91,2% coming from coins issued in exchange for locked ETH;
- TRX, native kriptovalyuta net TRON, is ahead of all other digital assets on the HTX balance sheet in value, but Justin owns the lion’s share of these coins;
- 88% of stablecoins Tether (USDT) from the exchange reserves are either loaned out or represent staking tokens received in exchange for blocked ones.
Part of HXT reserves
According to Protos employees, the most alarming signs are three factors: the presence of “wrapped” bitcoins, which may not be backed by anything, staking and issuing loans in Ethereum and USDT. This means that if the exchange’s users begin withdrawing digital assets en masse, its reserves will not be sufficient to fulfill all requests, and the company will go bankrupt.
Sun and his subordinates have not yet commented on the results of the study, and therefore their position on this issue is unknown.