Houbi to Layoff 20% of its Staff, Sparks Insolvency Rumor

January 8, 2023

MCP News Free

Houbi to Layoff 20% of its Staff, Sparks Insolvency Rumor

There have been reports from multiple sources in the past days about Huobi laying off 20% of its workforce, a report that sparked controversies regarding the exchange in the community.

Huobi Layoff Sparks Insolvency Rumor

As per a recent report by Reuters, the crypto exchange Huobi Global has laid off 20% of its staff, a report that spurred discussion in the community about whether or not the exchange is solvent.

On December 30, Colin Wu reported a situation related to the recent report, according to Wu;

“Justin Sun’s Huobi exchange will cancel all year-end bonuses, and will prepare to lay off the team of 1,200 people to 600-800 people, and cut the salaries of senior employees, according to several insiders.” Wu later added an update on Jan. 5, stating that:

“Justin Sun’s HR is communicating with all Huobi employees to change [their] salary form from fiat currency to USDT/USDC; employees who cannot accept it may be dismissed. The move sparked protests from some employees.”

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JUSTIN Sun Reacted to the Report

As the discussion about the solvency of Huobi exchange continues, Justin Sun, the founder of Tron and the current Huobi advisor has been questioned by South China Morning Post (SCMP) for confirmation of the reports.

According to Sun, the insolvency rumors about Huobi were untrue, he however affirmed this in a tweet on Friday.

.@HuobiGlobal is an exchange that was founded in 2013 and has since grown to become one of the most popular exchanges in the world. Huobi has a strong focus on technology and security,and it has implemented a number of measures to ensure the safety of its users and their assets.
— H.E. Justin Sun 孙宇晨 (@justinsuntron) January 6, 2023

As concerns about the Huobi staff layoff grew, another report sparked up on Twitter alleging that Huobi workers have created fake accounts on Twitter to complain to Justin Sun regarding the situation.

#Huobi seems to be melting down in real time, possibly along with His Excellency #JustinSun's fortune…

Shut down all intra-employee IMs etc, maybe fired a bunch of people. Employees now angry (or Sun is ruggin') @HuobiGlobal @justinsuntron https://t.co/0PGGHKtX8D pic.twitter.com/VioEzdRwVo
— ⚯ M Cryptadamus ⚯ | @cryptadamist@universeodon.com (@Cryptadamist) January 5, 2023

“Apparently Justin Sun tried to dissolve the company (which would presumably leave all the employees unemployed),” the report stated.

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