Speculation on Twitter that cryptocurrency exchange Huobi has fired staff and shut down internal communications has prompted the community to advise users to withdraw funds, despite an adviser to the exchange denying the rumours.
on a january 5 cheepHuobi adviser Justin Sun addressed rumors of alleged insolvency, saying that the exchange's business development was "good" and that "the security of user assets will always be fully protected."
Sun also apparently dismissed speculation about disgruntled staff, saying that Huobi will "fully respect the legal demands of local employees."
Earlier, on Jan. 3, crypto journalist Colin Wu reported that Sun changed Huobi employee salaries from being paid in fiat to being paid in Tether (USDT) or USD currency (USDC). Wu said that staff who disagree with the change could be fired.
Justin Sun's HR department is contacting all Huobi employees to change salary form from fiat currency to USDT/USDC; employees who cannot accept it may be fired. The move sparked protests from some employees. Exclusive https://t.co/QB4sjDyHc7
— Wu Blockchain (@WuBlockchain) January 4, 2023
Citing inside sources, Wu reported in December that Huobi canceled year-end bonuses and was preparing to cut its staff of 1,200 by as much as half.
The move to switch salary payments from fiat currency to stablecoin sparked protests from some employees, according to Wu.
a january 4 cheep from the BitRun Twitter account claimed that an “internal employee communication group” had been shut down on the exchange and that “all channels of communication and feedback with employees” had been blocked.
BitRun added that they were not ruling out a revolt by Huobi employees who could “outright steal user assets or programmers add backdoor Trojans” claiming the practice was “not protected by national laws.”
Huobi is headquartered in the Seychelles, with offices in Hong Kong, the United States, Japan, and South Korea. It is a company listed on the Hong Kong Stock Exchange.
The ominous warning was enough for one Twitter user claim Huobi “seems to be melting down in real time” and others suggested users withdraw funds from the exchange due to rumors.
If you are using Huobi
Consider withdrawing assets until the FUD wears offSome pretty negative sentiments and accusations are circulating on Twitter against Huobi.
Not verified so do your own due diligence and risk management accordingly.
— RossStephenson.eth (@magicross7) January 6, 2023
Huobi Token (HT) is down almost 7% in 24 hours, according to CoinGecko data.
Cointelegraph reached out to Huobi for comment but did not receive a response by press time.
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