HTX's Proof-of-Reserves Shows 700 Million TRX Moved to Poloniex and Binance Addresses
HTX, a cryptocurrency exchange owned by Justin Sun, revealed in its June proof-of-reserves that its holdings of TRX tokens dropped by approximately 700 million. At the time of disclosure, these tokens were worth about $238 million. Blockchain analysis shows that a significant portion of these assets moved to external addresses, including those associated with Poloniex and Binance.
HTX's June Proof-of-Reserves Disclosure
In June, HTX's official proof-of-reserves data indicated a sharp decrease in the quantity of TRX held by the exchange. This disclosure is part of HTX's transparency efforts, but it occurred just as HTX faced sanctions from the European Union and the United Kingdom's Foreign, Commonwealth & Development Office. The sanctions make the location and movement of HTX's funds a critical issue for regulators and customers.
Blockchain Analysis Traces TRX Flow
Protos investigated the movement of TRX using blockchain data from the TRON network. They tracked 700 million TRX moving out of an HTX cold wallet in May, before the June disclosure. The funds were split into multiple transactions:
- 200 million TRX went to an address that forwarded 180 million to another address, which currently votes for Poloniex's Super Representative on the TRON network.
- 500 million TRX were sent to an address labeled "TT2," which Arkham Intelligence tags as "Justin Sun?" and has connections to HTX.
- Some TRX also flowed to addresses identified as Binance hot wallets.
Confirmed Transactions and Fund Movements
It is confirmed that HTX moved 700 million TRX from a disclosed cold wallet in May. Of these, 180 million TRX ended up in an address supporting Poloniex's Super Representative. The 500 million TRX sent to the TT2 address were further transferred, with 100 million TRX eventually reaching Binance before the main inflow. These movements pattern similar to previous tracking of HTX's Ethereum reserves.
Uncertainties in Fund Ownership
While blockchain data shows TRX flowing to Poloniex-linked addresses, HTX has not officially confirmed any relationship or transfer to Poloniex. The ownership of some addresses, like TT2, is based on third-party labels and not definitively verified by HTX. The exact purpose of these movements remains unclear from the supplied sources.
Why Fund Transparency Matters for Sanctioned Exchanges
The EU and UK sanctions against HTX heighten the importance of knowing where its assets are located. The movement of TRX to addresses linked to Poloniex, another exchange owned by Justin Sun, raises questions about asset separation between his ventures. This transparency is vital for compliance and customer trust, especially after HTX also reduced disclosures for over $1 billion in other assets, pointing to an undisclosed "ThirdParty" custodian.