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Some Chinese exchanges are under immense pressure, with Huobi's founder Li Lin selling shares, Huobi temporarily suspending withdrawals, and rumors of Kucoin temporarily suspending withdrawals.

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Some Chinese exchanges are under immense pressure, with Huobi

In the bear market, the LUNA and 3AC incidents have undoubtedly added insult to injury for exchanges already affected by the Chinese ban. Below is a summary of the situations and rumors surrounding three Chinese exchanges, for reference only.

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In the bear market, the LUNA and 3AC incidents have undoubtedly added to the woes of exchanges already affected by China's ban. Below is a summary of the situations and rumors surrounding three Chinese exchanges for reference only.

Huobi: According to reports from media Wu Talk, multiple sources have confirmed that Huobi's founder, Li Lin, is seeking to sell his stake in Huobi. Li Lin holds over 50% of the shares, but it may be challenging to sell at a high valuation. Shareholders of the exchange include Sequoia China, ZhenFund, among others. It is said that after the China ban, Huobi has expelled Chinese users, and its revenue has declined significantly, with ongoing layoffs.

Hoo: Hoo exchange announced on 6/19 in a statement that market volatility, coupled with issues such as large institutions facing liquidation and liquidity drying up, exacerbated user panic. This led to a significant increase in withdrawal requests, impacting the liquidity of hot wallets. As a result, withdrawals were halted as time was needed to process transfers from cold wallets and other assets. When withdrawals resumed in the following days, they were primarily for less popular altcoins.

Facing scrutiny, Hoo's founder, Wang Ruixi, stated that there is absolutely no intention to abscond with funds, but the exchange is currently in a critical phase that requires time to resolve. He mentioned being busy contacting multiple financial institutions to address liquidity issues and safeguard users.

Kucoin: Twitter analyst Miles Deutscher suggested hearing many rumors that Kucoin would also suspend withdrawals shortly, presumably due to the impact of LUNA. However, Deutscher clarified that this was only speculation and not a cause for panic. Kucoin's CEO also dismissed the rumors, stating that there are no funds in LUNA, 3AC, or Babel.

FTX founder SBF recently told Forbes that some third-tier exchanges have quietly become insolvent. Additionally, Voyager, which has lending relationships with 3AC, announced on 7/2 a halt to user deposits, withdrawals, and trading.