Rumors of canceled bonuses, pay disputes, and massive layoffs have stirred FUD among community members of the crypto exchange Huobi notwithstanding the fact that the rumors have been denied.
Despite a Huobi counsel rejecting the reports, the community has advised customers to remove cash in response to rumors that the cryptocurrency exchange Huobi has fired personnel and shut off internal communications.
Huobi advisor Justin Sun refuted reports of alleged bankruptcy in a tweet on January 5 by stating that the exchange’s business growth was “excellent” and that the “security of customers’ money will always be completely maintained.”
Sun also seemed to dismiss rumors of unsatisfied workers, declaring that Huobi would “completely respect the legal needs of local employees.”
Earlier, on January 3, cryptocurrency reporter Colin Wu revealed that Sun had switched the salary of Huobi employees from being paid in cash to either Tether USDT or USD Coin. Wu said that employees who objected to the adjustment may be fired.
Wu said in December, citing sources, that Huobi had canceled year-end bonuses and was getting ready to lay off as many as half of its 1,200 employees.
Some workers protested the decision to switch the wage payment from currency to stablecoins, according to Wu.
The exchange’s “communication group with internal staff” had allegedly been shut down, and “all contact and feedback channels with employees” had been restricted, according to a tweet from the BitRun account on January 4.
According to BitRun, the process is “not protected by state regulations,” therefore Huobi personnel might “directly take away user assets or programmers implant backdoor Trojan horses” and stage a coup.
Huobi is headquartered in Seychelles and has offices there as well as in Hong Kong, the US, Japan, and South Korea. It is a publicly traded corporation on the Hong Kong Stock Exchange.
One Twitter user said Huobi “looks to be melting down in real-time” as a result of the alarming warning, while others advised users to withdraw money from the exchange as a result of the reports.
According to statistics from CoinGecko, Huobi Token has decreased by around 7% in the last day.
