Huobi Exchange Faces Controversy After Staff Layoffs, Wage Cuts

• Justin Sun’s Huobi Exchange has been facing difficulty recently due to reports of the company drastically reducing its workforce and blocking internal staff communication channels.
• Huobi announced that it is decreasing personnel by 20%, and Justin Sun confirmed that the safety of users‘ assets will always be maintained.
• Colin Wu revealed that Sun had altered the way that staff wages at Huobi were paid from being paid in fiat currency to being paid in either Tether (USDT) or USD Coin (USDC).

Justin Sun’s Huobi Exchange has been facing difficulty in recent days, as reports of the company drastically reducing its workforce, forcing workers to accept their wages in stablecoins, and blocking internal staff communication channels have come to light. The cryptocurrency community at large has been speculating that the exchange is headed for insolvency.

Huobi Global has confirmed its intentions to decrease personnel by 20%, with advisor Justin Sun representing the business publicly. In a tweet sent on January 5, Sun said that the commercial growth of the exchange was going well and that the safety of the users‘ assets will always be maintained to the fullest extent.

However, the situation took a turn for the worse when cryptocurrency writer Colin Wu revealed that Sun had altered the way that staff wages at Huobi were paid from being paid in fiat currency to being paid in either Tether (USDT) or USD Coin (USDC). Additionally, Wu noted that employees on staff who were opposed to the move may be terminated.

The controversy has caused Huobi’s exchange token and trading volume to take a hit, as the cryptocurrency community continues to speculate on the company’s future. Sun has since tried to reassure the community by reiterating that the safety of the users‘ assets will always be the utmost priority, and that the exchange will continue to work towards the development of the crypto industry with the help of the community.

For now, it is unclear what the future holds for Huobi Exchange, but it will be interesting to see how the company will handle the situation and if it will be able to make a comeback.