Huobi replied to the concerns over fake reserves snapshot

Huobi released a ‘Work Report on Asset Transparency.’
As per the report, Wu Blockchain covered a piece of news that led to raising concerns of the users.

On Sunday, Wu Blockchain, a crypto news provider tweeted mentioning Huobi, a crypto exchange. In that tweet, it was mentioned that “Huobi has issued a screenshot of the asset reserve in which it can be clearly seen that more than 10,000 ETH has been transferred from Huobi 34 wallet.

After Huobi released the asset snapshot of the asset reserve, 10,000 ETH was transferred from 0xca…c3fc (Huobi 34) to Binance and OKX deposit wallets. The Huobi 34, which had 14,858 ETH at the time of the snapshot, currently has only 4,044 ETH left. https://t.co/wrphZxadBM pic.twitter.com/B2lRXMF8su
— Wu Blockchain (@WuBlockchain) November 13, 2022

After that tweet, concerns were raised by many. So, in response to that tweet Huobi described that a portion of that widely known address is the hot wallet address and made sure to the public that the company promises the security of the assets of clients along with 100% retrieval and that it will not imply any kind of limitations on deposits and withdrawals.

Part of the publicized address is the hot wallet address.During the operation of the exchange, the transactions on the chain are daily routines. Huobi guarantees the security of users’ assets & 100% redemption & will not impose any restrictions on users’ deposits and withdrawals. https://t.co/mQuOg5TAUF
— Huobi (@HuobiGlobal) November 13, 2022

On November 13, Huobi also shared its ‘Work Report on Asset Transparency’ on Twitter. The transparency report included the revelation of its hot and cold wallet balances. The crypto exchange claimed that the revelation of its hot and cold wallets will be shared on a regular basis.

As the Work Report on Asset Transparency was shared, the concerns related to the asset screenshot of the asset reserve were initiated to be raised. After this, Wu Blockchain covered the news in which it was reported that the exchange has transferred 10,000 Ethereum from the Huobi 34 wallet.

The Merkle Tree Proof of Reserves audit

When the screenshot was taken, a total of about 14,858 Ethereum was present in that wallet. But, not more than two minutes, the 10,000 Ethereum were transferred from that very wallet. The widely known Huobi 34 wallet has a balance estimated at about 18,000 Ethereum and carries on to have a normal transaction from the wallet.

Huobi has also guaranteed to issue a Merkle Tree Proof of Reserves audit also. The audit is done by a third party in 30 days to enhance the confidence of the user.

In this audit, a free body takes an unidentified snapshot of all crypto balances stored by the platform and stores them into a Merkel tree. The Merkel tree is a formation generally used to verify the uprightness of block data.

Source: https://www.thecoinrepublic.com/2022/11/14/huobi-replied-to-the-concerns-over-fake-reserves-snapshot/