Huobi Global denies ‘large-scale layoffs’ and key exec resignations

Huobi Global says it has no plans to conduct “large-scale layoffs” and has refuted reports that two of its top executives have resigned amid a takeover of the Seychelles-based crypto exchange.

Reports that the company’s CEO Leon Li and chief financial officer Chris Lee have resigned appeared to have originated from an Oct. 29 Twitter post from Chinese crypto blogger Colin Wu, citing “people familiar” with Huobi.

The Twitter post also suggested there could be mass layoffs planned for its 1,600 employees due to “too many people” working at the company.

However, a spokesperson from Huobi Global told Cointelegraph that rumors there could be mass layoffs are “untrue” and that its senior management continues to perform their duties “as per normal,” stating:

“Huobi Global’s senior management team is performing their duties as per normal, and rumors of large-scale layoffs are untrue. At present, Huobi Global enjoys a healthy cash flow, and the new shareholders have completed the capital injection.”

“Huobi has demonstrated positive development potential in key regional markets, and will continue to invest in business innovation, exploring international markets and recruiting local employees,” they added.

However, the spokesperson admitted that due to the crypto market downturn, some cost-cutting could still be on the cards though it didn’t clarify what this could entail, stating:

“Huobi Global is in a sound financial position at present, but due to the current market downturn, Huobi will also make adjustments to reduce costs and increase efficiency.”

Related: Why is the price of Huobi Token up 12% today as rest of the market slumps?

Huobi is a Chinese cryptocurrency exchange founded by Leon Li in 2013 and currently has operations in more than 30 countries around the world and a presence in over 100 countries.

In August, the crypto exchange got the green light to offer fiat cryptocurrency trading services in Australia after registering as a digital currency exchange provider with the Australian Transaction Reports and Analysis Centre (AUSTRAC).

September saw Huobi establish a partnership with South Korea’s “blockchain” city of Busan to provide research and development, technology and financial support for the Busan Digital Currency Exchange. Huobi is also set to assist in identifying and hiring blockchain talent for Busan’s local exchange.

Meanwhile, the biggest news came in October, when About Capital Management (HK) Co. Ltd, a Hong Kong based-asset management firm, became the exchange’s controlling shareholder following a successful buyout deal for an undisclosed amount.