HTX Ties Up with Poloniex in Questionable Reserves Rotation

HTX has been sanctioned by the European Union and the UK's Foreign Commonwealth & Development Office, prompting concerns over its financial transparency.

TRM Labs notes that HTX has rapidly rotated funds through various addresses on-chain, making it difficult to identify its holdings.

Recently, HTX updated its proof-of-reserves, categorizing some of these funds as 'ThirdParty' reserves, which are supposedly held by third-party custodians. However, the company has failed to disclose the identity of these custodians.

Protos investigated one specific instance where stETH was transferred from HTX's reserves to a Poloniex address, where it was commingled with Poloniex's own reserves. This pattern suggests that HTX may be relying heavily on Poloniex to hold certain assets.