Huobi Global Exchange recently announced that it will become the first cryptocurrency exchange to list the PYUSD stablecoin issued by PayPal. Huobi will permanently provide the PYUSD/USDT trading pair with zero transaction fees. Huobi said that when market circulation and liquidity conditions mature, trading will be opened as soon as possible. It is worth noting that Huobi’s plan to list PYUSD comes at a time when it is rumored to be facing the risk of bankruptcy, with massive outflows of funds and a decline in total locked value (TVL).

According to data from DefiLlama, Huobi saw $64 million in outflows between August 5 and 6, and its TVL fell to $2.5 billion from $3.09 billion on July 6. Previously, cryptocurrency investigator Adam Cochran pointed out inconsistencies in Huobi’s holdings of USDT and USD Coin (USDC), suggesting that Huobi may have gone bankrupt. However, Cochran mentioned that Huobi’s recent “Merkle Tree Audit” claimed that Huobi users had $630 million in USDT and $631 million in USDT wallet balances. The crypto industry veteran concluded: “Huobi is seriously bankrupt.”

In addition, Cochran also accused Huobi’s top executives of being arrested in China for their alleged involvement in the gambling platform. He added that at least one C-level executive had recently left Huobi, although it was unclear whether the departure was related to the investigation. Meanwhile, Huobi’s native currency HT had little reaction to the news. At press time, HT was trading at $2.61, down about 1% in the past day and 1.8% in the past 14 days.