Huobi Calls for Crypto Exchanges to Improve Security and Transparency

Dear colleagues and clients,

The entire crypto industry is in the middle of the most severe trust crisis we have seen in years. In the face of doubts and uncertainties in the wake of the FTX fallout, solidarity is what our industry needs the most to weather this challenging period. Before we can emerge from this crisis intact, what all crypto exchanges should do is demonstrate to everyone how we are protecting our users' asset security.

As the world's top virtual asset trading platform with zero major security incidents since our founding nine years ago, Huobi is experienced and well-positioned to address security issues including bank runs. To help overcome this trust crisis faced by our fellow industry peers and to promote the long-term development of the industry, we are now calling for all crypto exchanges to improve security and transparency together by adopting the following measures:

1. Always put the security of our users' assets first. Every crypto exchange should prioritize this principle over anything else. It has been Huobi's top priority to protect our users' assets. Meddling with our users’ assets is a red line that we will never cross.
2. Ensure that the assets of users are fully redeemable. We should always guarantee the rights and interests of our users to safely deposit and withdraw their assets anytime and anywhere without restrictions, and we should always adhere to our commitment to guaranteeing full redemption for our users.
3. Always guarantee the security of our wallet's private key and maintain the security of our assets right from its source. In terms of asset storage, Huobi wallet uses multi-signature and threshold signature technology to ensure the security of the private key signature process, multi-person and multi-site backup to ensure the availability of private keys, and self-developed security hardware to ensure the robustness of storage.
4. Periodically make the Merkle Tree Proof of Reserves audits. As we known, About Capital has completed the acquisition of the shares of Huobi's major shareholder in early October 2022. During the acquisition process, it has also completed the Proof of Reserves audit. What's more, Huobi will disclose our technical solutions and open source codes to the whole industry for free, and provide technical consultation for any exchange who is preparing to get started with the Merkle Tree Proof of Reserves audit. Meanwhile, we will cooperate with a certified third party to complete another cryptographic Merkle Tree Proof-of Reserve audit in the next month.
5. Adhere to the principle of "Community First, Users First." We always safeguard the interests of our users and listen to the voice from our community. As the first responders of the FTX issue, Huobi and Tron DAO acted together and announced the exchange of Tron tokens and HT on the FTX platform at a 1:1 ratio to fully protect the benefits of HT holders and Tron token holders. At present, we are still in close communication with FTX to speed up further work.

Huobi has always been known for and proud of our strong security and risk control system since 2013. As a top trading platform with the longest history and the best security record, Huobi has previously created an industry record, that is, users have fully redeemed the assets worth of tens of billions of dollars when we were discontinuing services in some countries and regions, and has ensured the users’ asset security and protected their rights and interests in the whole process. We call for industry partners to implement the security and transparency initiative en masse to build up strength for better industry development in the future.

Huobi Global

November 12, 2022

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Huobi Global reserves the right in its sole discretion to amend or change or cancel this announcement at any time and for any reasons without prior notice. The above is for information purposes only and Huobi Global makes no recommendations or guarantees in respect of any virtual asset, product, or promotion on Huobi Global. Prices of virtual assets are highly volatile and trading virtual assets involves risk. Please read our Risk Reminder text here.