In an effort to counter rising distrust among crypto investors following the FTX fall, all crypto exchanges decided to share proofs of reserve with the public in order to demonstrate legitimacy. Several anomalies were discovered during on-chain investigation that suggest market manipulation and foul play. released its cold storage information on Oct. 21, 2022. However, investigators discovered that 320,000 Ether was sent to Kris Marszalek the CEO of denied any wrongdoing. He stated that the funds were accidentally transferred and were eventually returned to the original storage. Source: Colin WuOn Oct. 28, released its proof of reserves snapshot, which, Solidity developer Shegen alleged, was done using’s funds, and questioned:“This was topping up for the proof. Gate and are fucked?”Moreover, the crypto community suspects Huobi of attempting a similar manipulation. A wallet address linked with Huobi was found to have transferred 10,000 ETH to Binance, OKX and OKX wallets shortly after Huobi released the asset snapshot. 10,000 ETH was transferred from Huobi 34 (0xca…c3fc), to Binance and OKX deposit accounts after Huobi released the asset snapshot. The Huobi 34, which was holding 14,858 Ethereum at the time of the snapshot had 4,044ETH left.— Wu Blockchain (@WuBlockchain) November 13, 2022

Source: Etherscan. Colin Wu, a blockchain investigator, pointed out transactions on Etherscan that show Huobi had shown 14,858 Ethereum in its most recent snapshot. This amount has since fallen to 2,463.5ETH at the time this article was written. Source: EtherscanWhile Huobi is yet to publicly retaliate against the claims put forth by the crypto community, founder Lin Han revealed their side of the story. Han argued that the photo in question was taken Oct. 19, two days prior to’s accidental transfer of 320,000 ETH.(1/2) worked with Armanino on the Proof of Reserves using a snapshot on Oct.19 2022 2 days before’s 320,000 ETH deposit to Check the proof below— Lin Han (@han_gate) November 13, 2022

Han reiterated that funds came in after the snapshot had been released and shared relevant evidence for the community’s satisfaction. However, the possibility of multiple crypto-exchanges working together to manipulate investor funds has forced them to keep their guard up until an officially issued statement. Huobi has not yet responded to Cointelegraph’s request for comment.Related: Binance shares wallet addresses after proof-of reserve pledge and activityAs more crypto exchanges make their cold storage information public, the immutable nature of blockchain technology will allow investors and investigators to dive into the history of the exchange’s operations. “Our objective is to allow users of our platform to be aware and make informed decisions that are aligned with their financial goals,” said Binance while revealing wallet addresses.

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