Huobi Guarantees Normal Operations During OKExs Suspension of Crypto Withdrawals

Saturday 17 October 2020, 5:39 AM AEST - 6 days ago

The Huobi cryptocurrency exchange assured users its trading platform is currently operating normally after one of its biggest competitors, OKEx, announced it suspended all cryptocurrency withdrawals indefinitely.

Huobis cold wallet uses multi-signature and threshold signature technology to ensure the security of the private key signature process, Ciara Sun, vice president of Huobi Global Markets, told CoinDesk in a Wechat message. Multiple people and multiple backups ensure the availability of the private key.

While one would expect exchanges like Huobi would benefit from OKExs news – as in the BitMex case, where large bitcoin outflows from the exchange went to its competitors – that doesnt appear to have happened because of growing concern about Huobis operations due to two exchanges large user base in China.

Huobis platform is currently operating normally, Sun said.

There was speculation Huobi may have loaned assets to OKEx but, according to data provided by CryptoQuant, 997 BTC was transferred from Huobi to Binance at 10:21:30 UTC Friday, Oct. 16,. That transfer was also captured earlier by Twitter account @whale_alert, but was mistakenly said to have gone to OKEx.

This was a normal withdrawal behavior, Sun told CoinDesk about the transfer. It did not trigger risk control and did not involve illegal operations. We cannot disclose our user information.

photo_2020-10-16-11-47-38Bitcoin outflows from Huobi to OKEx

Huobi does not appear to be negatively affected by the situation at OKEx either.

At this time theres no evidence to support that this could extend to Huobi as well, Matthew Graham, chief executive officer of Beijing-based crypto consultancy Sino Capital, said in a direct mess ...

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