Rumors have been circulating about the difficulties that the Huobi Global crypto exchange is facing, but the company has denied them outright.
According to the Seychelles-based exchange, it does not have any intention of conducting ‘large-scale layoffs’ and also denied reports that two of its leading executives had resigned amidst a takeover.
On October 29th, Colin Wu, a Chinese crypto blogger, cited people familiar with the matter at Huobi Global in a tweet that mentioned the resignations.
He said that Chris Lee, the chief financial officer and Leon Li, the chief executive officer of the company, had tendered their resignations.
According to the Twitter post, the company was also planning on executing massive layoffs for its 1,600 employees because there were ‘too many people’ who were working as part of it staff.
But, a spokesperson for Huobi Global refuted the rumors altogether. The spokesperson said that rumors about the large-scale layoffs were untrue and the senior management was also conducting their duties as the usual.
The spokesperson further added that the company also had a healthy cash flow, as the company’s new shareholders had recently completed the capital injection.
What to expect
The spokesperson added that there was positive development potential in some important regional markets for Huobi Global.
They also said that the company would continue recruiting local workers, explore international markets and make investments in business innovations.
But, the spokesperson did add that due to the downturn in the crypto market, the company did plan on reducing some costs, but they did not provide any details about what exactly this would include.
According to the spokesperson, Huobi Global’s current financial position was sound, but it would be required to make adjustments because of the market downturn that would increase efficiency and cut costs.
Leon Li founded the Chinese crypto exchange back in 2013 and it has spread its operations in more than 30 countries all across the globe, while it has expanded its presence in more than 100 nations.
Australia granted Huobi Global permission to offer fiat crypto trading services in the country because the crypto exchange registered itself with the Australian Transaction Reports and Analysis Centre (AUSTRAC).
It is established in the country as a digital currency exchange provider. Huobi also entered into a partnership in September with the ‘blockchain’ city of South Korea called Busan.
It would provide the Busan Digital Currency Exchange with technology, research and development and financial support.
The company is also set to help in searching for and hiring blockchain talent for the local exchange in Busan.
However, the biggest news about Huobi Global surfaced back in October when an asset management firm based in Hong Kong became the controlling shareholder of the exchange.
Capital Management (HK) Co. Ltd completed a successful buyout deal, but the amount was not disclosed.
These rumors are not the first ones to have surfaced about Huobi Global, given that the crypto market’s downturn is taking effect on many companies in the space.