Doubts mount over Huobis’ future as harsh dismissal rumors are denied

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Speculation on Twitter that crypto exchange Huobi has laid off staff and shut down internal communications has prompted the community to advise users to withdraw funds, despite an adviser at the exchange denying the rumours.

In a tweet on Jan. 5, Huobi adviser Justin Sun addressed the alleged insolvency rumors, saying the exchange’s business development is good and the security of user assets will always be fully protected.

Sun also apparently brushed off speculation about disgruntled staff by saying that Huobi will fully comply with local employee legal requirements.

Earlier, on January 3, crypto journalist Colin Wu reported that Sun had changed the salaries of Huobi employees from being paid in fiat to being paid in Tether (USDT) or USD Coin (USDC), saying that staff who disagreed with the change could be fired.

Justin Sun HR communicates with all Huobi employees to change salary form from fiat currency to USDT/USDC; employees who cannot accept it can be made redundant. This decision sparked protests from some employees. Exclusive https://t.co/QB4sjDyHc7

— Wu Blockchain (@WuBlockchain) January 4, 2023

Wu had reported earlier in December 2022 that Huobi had canceled year-end bonuses and was preparing to halve its 1,200 employees citing insiders.

The decision to change salary payment from fiat to stablecoins sparked protests from some employees according to Wu.

A January 4 tweet from the BitRun Twitter account claimed that a communication group with internal employees of the exchange had been shut down and that all communication and feedback channels with employees had been blocked.

BitRun added that they do not rule out a revolt by Huobi employees who could directly steal user assets or that programmers add backdoor Trojans claiming the practice is not protected by national laws.

Related: Old Money All but Leaked, Huobi Co-Founder Discusses the Challenges of Running a $400M Venture Capital Fund

Huobi is based in the Seychelles, with offices in Hong Kong, the United States, Japan and South Korea. It is a listed company on the Hong Kong Stock Exchange.

The ominous warning was enough for one Twitter user to claim that Huobi appears to be melting in real time and others suggested users withdraw funds from the exchange due to the rumours.

If you are using HuobiDo, consider withdrawing assets until the FUD explodes

Some rather negative feelings and accusations are circulating on Twitter against Huobi.

Unverified, so do your own due diligence and manage risk accordingly.

— RossStephenson.eth (@magicross7) January 6, 2023

Huobi Token (HT) is down almost 7% over 24 hours according to data from CoinGecko.

Cointelegraph has contacted Huobi for comment but has not received a response at the time of publication.

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