A recent investigation by Protos has highlighted several anomalies and potential risks in the reserve structure of Justin Sun's HTX exchange. The exchange's Proof of Reserves (PoR) tool and on-chain snapshots reveal that a significant portion of its BTC reserves, amounting to 18,000 BTC, are in the form of BTC-TRC20 tokens, with collateral linked to Poloniex, which has yet to complete its PoR. Additionally, HTX's ETH reserves have drastically reduced from a peak of 392,000 ETH in May 2025 to just 118,000 ETH, with only 8.8% being native ETH, while the rest are either loaned out or staked.
The investigation also found that over 80% of HTX's USDT reserves are loaned out to platforms like Aave and JustLend, with frequent billion-dollar fund transfers. Furthermore, the conversion from HT to HTX has dilution issues, and the HTX DAO has reportedly entered a read-only state due to unpaid fees. In response, HTX assured users that their assets are "100% secure" and noted that it has been regularly disclosing PoR data for 38 consecutive months. Users can view the monthly updated reserve proof reports on the HTX website.
HTX Exchange Faces Scrutiny Over Reserve Anomalies and Risks
Disclaimer: The content provided on Phemex News is for informational purposes only. We do not guarantee the quality, accuracy, or completeness of the information sourced from third-party articles. The content on this page does not constitute financial or investment advice. We strongly encourage you to conduct you own research and consult with a qualified financial advisor before making any investment decisions.
