Justin Sun-owned exchanges Poloniex and HTX appear to have pulled hundreds of millions of dollars from the AAVE lending platform.
The address 0x176F3DAb24a159341c0509bB36B833E7fdd0a132, labeled “Poloniex 9” on Etherscan, is the address where Sun previously requested the return of hacked funds from Poloniex.
This address withdrew 45,000 ether (ETH) from AAVE on November 5th and moved the funds to Lido shortly thereafter.
Read more: Justin Sun reveals Poloniex problems are preventing proof of buried treasure
He also previously promised that Poloniex would undergo certification of its reserves with third-party verification, a process the company itself calls an “audit,” which would likely reduce questions about its bizarre reserve management.
But Sun ultimately explained that Poloniex’s problems meant it was “unable to meet the requirements” of the reserve certification process.
Sun and Poloniex are reluctant to explain exactly what those issues are.
Read more: HTX advised by Justin Sun to use its reserves to play games
These Poloniex actions mimic a series of similar AAVE loan transactions by Sun-owned HTX.
This pattern of HTX interacting with AAVE continues with several new batches of transactions that occurred at the same time as the Poloniex transaction.
Specifically, these were from the 0x18709E89BD403F470088aBDAcEbE86CC60dda12e address, which is labeled “Huobi: Recovery” in Etherscan.
Yesterday, HTX withdrew $500 million from AAVE and then $300 million on Tether.
I then withdrew 30,000 ETH from AAVE and deposited those funds into Lido for staking.
Broadly speaking, it is unclear why Poloniex and HTX are lending a large portion of their reserves to AAVE, and it is also unexplained why they move funds so frequently that they appear to be mimicking activities more akin to crypto traders than similar to how exchanges generally manage their reserves.
Protos asked Poloniex and HTX for clarification on their involvement in recent transactions, but did not immediately receive a response.
