Huobi Crypto Exchange Refuses Mass Layoffs and Executive Resignations
Major crypto exchange Huobi Global has rejected mass layoff demands and claims that two of its top executives have resigned.
In a tweet on October 29, prominent Chinese journalist Colin Wu claimed that the company’s CEO Leon Li and CFO Chris Lee have resigned. Citing people familiar with the matter, he said the crypto exchange is also preparing for “large-scale layoffs.”
“Justin Sun’s TRON team has taken over key departments in Huobi. Huobi has 1,600 employees, Justin Sun believes that there are too many people, and there may be large-scale layoffs,” Wu Wu so.
However, a spokesperson reportedly denied the claims, noting that rumors of upcoming mass redundancies are “untrue” and that senior management is continuing to carry out their duties “as normal.”
“Huobi Global’s senior management is performing their duties as normal, and rumors of large-scale layoffs are untrue. Currently, Huobi Global enjoys a healthy cash flow, and the new shareholders have completed the capital injection,” the spokesman reportedly said.
Nevertheless, the spokesman did not completely reject layoff plans. Citing the ongoing slowdown in the crypto market, they said the exchange may look at some cost-cutting without mentioning layoffs as an option.
“Huobi Global is currently in a solid financial position, but due to the current market downturn, Huobi will also make adjustments to reduce costs and increase efficiency.”
Huobi founder sells shares in the company
As reported, Huobi founder and controlling shareholder Leon Li Lin announced in early October that he aims to sell his entire stake in the crypto exchange to About Capital Management, a Hong Kong-based asset management company.
At the time, Wu claimed that Tron founder Justin Sun is a core investor in About Capital, suggesting that he is the real buyer of the stake (which the report estimated to be around $1 billion).
“WuBlockchain learned from multiple sources that Justin Sun is indeed the core investor in this M&A fund,” the report said, adding that the Tron founder was at the delivery site in Singapore on October 8 where the deal took place.
In particular, Huobi Global has struggled with various challenges recently, especially after China’s crackdown on the sector. The exchange initially blocked Chinese residents from the platform in 2021 and completed its exit from China, its largest market, in 2022.
Founded in 2013, Huobi is one of the world’s largest crypto exchanges in terms of trading volume. According to CoinGecko, the exchange currently ranks 14th and has processed $785 million worth of trades in the past 24 hours.
