HTX receives $500M USDT infusion then sends it away

Justin Sun-advised HTX recently received $500 million worth of Tether (USDT), which it quickly moved between addresses and then distributed to various non-HTX addresses.

HTX distributes a tool to help verify its proof-of-reserves process, and a review of that address shows that as of January 1, HTX disclosed $696 million total USDT. This was largely made up of $552 million USDT-aETHUSDT — Tether lent on AAVE — meaning HTX only had approximately $145 million USDT that wasnt lent out.

That is until yesterday when it received $500 million directly from the Tether Treasury to TDToUxX8sH4z6moQpK3ZLAN24eupu2ivA4. This address was included in the HTX proof-of-reserves but wasnt previously listed on the proof-of-reserves documentas a USDT address.

Read more: Justin Sun-advised HTX has redeemed 7,300 WBTC it did not disclose

The bulk of this, $400 million, was moved to TK86Qm97uM848dMk8G7xNbJB7zG1uW3h1n in four transactions.

These funds were then largely further distributed to TFTWNgDBkQ5wQoP8RXpRznnHvAVV8x5jLu, another HTX address.

From here, the funds were sent to a variety of different addresses on TRON and seem to be no longer under the control of HTX.

It‘s not clear why this Justin Sun-affiliated exchange received such a large infusion of assets that were distributed so quickly or why such a large portion of HTX’s liquid USDT reserves are lent on AAVE.