Huobi Announces Layoffs of 20% of Staff amid Industry Struggles Following FTX Collapse

Huobi Confirms Layoffs of 20% of Staff as Crypto Exchange Industry Faces Ongoing Turmoil

Key takeaways:

• Huobi plans to lay off 20% of its workforce
• Internal communication channels may have been shut down
• Employees may be required to receive salaries in stablecoins
• Some employee benefits may have been canceled
• Justin Sun transferred $100 million in stablecoins to Huobi today

There has been a lot of speculation surrounding Huobi Global, a cryptocurrency exchange that was rumored to have been acquired by Justin Sun in October through an intermediary company. Huobi has addressed some of these rumors, denying some and confirming others.

Huobi, the cryptocurrency exchange, has announced that it will be laying off around 20% of its workforce. This news comes amidst rumors that the company has closed down internal communication and feedback channels, and is requiring its domestic staff to use Huobi accounts to receive salaries paid in stablecoins.

It is also alleged that the company has canceled certain employee benefits. While a Huobi spokesperson stated that the layoff ratio is expected to be around 20%, they denied rumors of closed communication channels and denied that employee benefits have been cut. Huobi Global is currently ranked as the 10th largest crypto exchange in terms of trading volume, according to CoinRanking.

In August 2022, Huobi founder Leon Li expressed interest in selling his 60% stake in the company, and by October, the exchange had reportedly reached a deal with Hong Kong-based investment firm About Capital, giving it control of a majority stake in the company. There have been rumors that Tron founder Justin Sun used About Capital as an intermediary to acquire Huobi. However, Sun has denied these claims and stated that he is only serving as an advisor to the company.

On-chain data shows that Sun recently transferred approximately $100 million in USDT and USDC to the exchange, and he took to Twitter to reassure Huobi customers and encourage them to “ignore the FUD and keep building.” 

Joy Rice

Joy Rice is a computer science graduate and crypto writer with a strong understanding of blockchain technology. She writes about the latest developments in the crypto industry, and is passionate about educating and informing readers about the potential uses of blockchain.