📉 Huobi's stablecoin reserves plummeted by 33% ($49 million) last week as traders withdrew funds amid reports of alleged exchange executives' arrests.

Background: Authorities are currently investigating Huobi exchange for fraud and suspicions of hidden insolvency, sparking a surge in user withdrawals.

In a countermove, Justin Sun injected $200M USDT to provide liquidity, aiming to stabilize the exchange amidst the crisis.

💥 The ripple effects of the exchange's downfall could be substantial, potentially extending to the broader crypto sector, including Bitcoin. Parties involved seem keen to avert such a scenario (especially after the FTX incident).

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