HTX reveals 700 million TRX deficit in proof-of-reserves

Analysis of HTX’s proof-of-reserves from June revealed a decrease of approximately 700 million TRX, valued at roughly $238 million at current market prices. Investigations into the movement of these assets show that a significant portion flowed into addresses supporting Poloniex’s Super Representative, while other portions were sent to Binance.

Tracing of the TRX flow indicates that in May, HTX moved 700 million TRX from a cold wallet labeled ‘HTX-Cold 6’ to various identified addresses. This included 200 million tokens sent to an address that subsequently forwarded 180 million tokens to an unlabeled address currently voting 928 million TRX for the Poloniex Super Representative.

In addition to the TRX drop, HTX reduced its disclosure for over $1 billion in other assets, citing an undisclosed ‘ThirdParty’ custodian. These financial movements occur amid regulatory scrutiny, as HTX has faced sanctions from the European Union and the United Kingdom’s Foreign, Commonwealth & Development Office.

Justin Sun, the entrepreneur behind TRON, Poloniex, and HTX, has built a multi-billion dollar crypto empire. While his career has included high-profile investments and significant wealth, it has also faced legal challenges, including a 2023 SEC lawsuit regarding unregistered securities and wash trading allegations.