Crypto exchange HTX, formerly Huobi, has raised concerns after abruptly disabling its proof-of-reserves system, according to Adam Cochran, managing partner at Cinneamhain Ventures.
This unexpected move coincides with TrueUSD (TUSD), which is alleged to be owned by HTX stakeholder Justin Sun, struggling to maintain its $1 peg for more than two weeks.
Earlier today, attempts to access HTX’s proof-of-reserves page revealed a complete lack of information about the exchange’s cryptocurrency reserves.
This included missing data on reserve rates, wallet balances, and user asset totals. Although the page is now back online, the timing of this temporary outage raises concerns, especially given the ongoing issues with stablecoin TUSD.
The recent scrutiny of TUSD has focused on concerns about its insufficient collateralization. TUSD has traded below $1 since January 7th, according to CoinGecko.
Earlier this month, TrueUSD was chastised for failing to provide real-time attestations demonstrating adequate dollar reserves backing the stablecoin.
This lack of transparency fueled speculation that TrueUSD may be under-collateralized, adding to the uncertainty surrounding HTX’s current situation.