Huobi and Gate.io Under Fire as Clarity Set in

Following the release of the reserves by cryptocurrency exchanges Huobi and Gate.io, both have been slammed for allegedly engaging in manipulation, according to a post.

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

While Huobi was slammed for transferring 10,000 ETH to Binance and OKX addresses after disclosing its reserves, while the exchange refutes having manipulated assets.

Huobi explained that the transactions on the chain were parts of its daily routines, stressing that it guarantees the security of users’ assets.

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

Blockchain investigator Colin Wu argued that the transactions on Etherscan revealed that Huobi had disclosed 14,858 ETH in its latest snapshot, but it has drastically reduced to 2,463 ETH at the moment.

A snapshot in cryptocurrency is a record of the status of a blockchain at a specific block height

Earlier on Oct. 28, Gate.io unravelled its proof of reserves snapshot but many crypto analysts including Solidity developer Shegen alleged that the exercise was done using Crypto.com’s funds.

While Crypto.com CEO, Kris Marszalek, has denied the claim of engaging in a shady transaction with Gate.io, stressing that the funds were initially accidentally transferred and have been recovered back to its original storage.

The ETH transfers that generated so much FUD & speculation on Twitter today were made over three weeks ago, on October 21st to https://t.co/pFc4Pz9nFR’s whitelisted corporate account at https://t.co/Mr9GCkL2gV.

— Kris | Crypto.com (@kris) November 13, 2022

Gate.io founder Lin Han clarified that the exchange did not use borrowed as proof of reserve, stressing that the exchange worked with Armanino on the Proof of Reserves using a snapshot on Oct. 19, 2022.

(1/2) https://t.co/fMCiAnAueR worked with Armanino on the Proof of Reserves using a snapshot on Oct.19 2022 2 days before https://t.co/PHnRJks7YS’s 320,000 ETH deposit to https://t.co/fMCiAnAueR.

Check the proof belowhttps://t.co/iCCKCb94kL

— Lin Han (@han_gate) November 13, 2022

Exchanges Provided Further Clarity

Amid FTX brouhaha and rising Fear of Uncertainty and Doubt (FUD) among crypto users, Gate.io took a notch further to clarify its stand on the alleged proof of reserve manipulation.

The exchange stated that Crypto.com’s funds were received after it had already showcased relevant proof to its crypto community.

In a blog post on Nov. 13, Gate.io stated that it only offered assistance to Crypto.com in a bid to retrieve the 320,000 ETH mistakenly forwarded to its Gate.io account.