In a text message to Reuters, Huobi adviser Justin Sun confirmed that the cryptocurrency exchange plans to lay off 20% of its workforce this quarter.
“The planned layoff rate is around 20%, but it is not currently being implemented. In the current state of the bear market, we will continue to have a very lean team going forward,” a Huobi spokesperson said at The told Block.
“Workforce optimization is aimed at executing brand strategy, optimizing structure, improving efficiency and returning to the top three.”
Sun, founder of Tron, is a member of Huobi’s Global Advisory Board.Over the past few days, he’s been battling rumors of Huobi’s bankruptcy on Twitter.Crypto Detective Colin Wu report Huobi employees were told they would be paid in Tether (USDT) or USD Coin (USDC) instead of fiat currency.
According to internal emails seen by The Block, employees must create Huobi accounts to claim their salaries. All paid in TetherFollowing protests by staff, sources Said The Twitter account BitRun said it blocked “all communication and feedback channels with employees.”
Wu added that at the end of December, several sources said Huobi would cancel year-end bonuses, cut senior management salaries, and decide to “lay off a team of 1,200 people to 600-800 people.” claimed to have made it clear that The Block confirmed Wu’s reports that year-end bonuses and executive salaries were significantly cut, although the cuts turned out to be 20% of his.
READ MORE: Justin Sun’s USDD Stablecoin Quietly Loses Its Peg Amid FTX Chaos
This caused concern on Twitter, with several users urging Huobi customers to remove all funds from the cryptocurrency exchange. Huobi Token (HT) Price Drops 12% Thursday, a series of Tweet By Sun who tried to dismiss the concerns.
He reassured users that Huobi has “the best security record in the industry with no security incidents in 10 years.”
“The security of user assets will always be fully protected,” he added (translated from Chinese).
Huobi’s internal turmoil has caused investors to lose faith in another Sun venture, Tron.this is TRX Token Drops 7.2% Within the last 24 hours.
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