Breaking: Justin Sun Confirms 20% Of Staff Layoff At Huobi

Tron founder Justin Sun on Friday said the crypto exchange Huobi plans to layoff 20% of its staff. While advisor Justin Sun earlier denied rumors of layoffs, pay disputes, and conflict with employees, he asserts several “structural adjustment” has not started and is expected to be completed by the first quarter.

Justin Sun, who is a member of Huobi’s global advisory board, confirmed in a text message to Reuters that the crypto exchange is indeed planning to layoff employees.

In an internal notice to Huobi staff, Justin Sun said the crypto exchange has survived in the crypto winter. Moreover, Huobi had an average of 20,000 new users in the last three months.

The move comes as concerns about reserves and solvency at crypto exchanges mount following the collapse of FTX. Recently, crypto lender Genesis laid off 30% of its staff due to FTX contagion.

Justin Sun termed the restructuring as “short-term pains” that can eventually bring advantages to the exchange. As the news of tensions at Huobi reached investors, they started withdrawing their assets and selling crypto tokens related to Tron and Huobi.

Tron (TRX) price is currently trading at $0.05079, down 8% in the past 24 hours. USDD stablecoin also depegged against USD and currently trades at $0.979.

Justin Sun Calms Huobi FUD in Crypto Community

While Huobi faces problems of declining trading volume and revenue after the FTX crisis, Justin Sun believes the crypto exchange is performing better than other exchanges.

Justin Sun took to Twitter to calm the FUD surrounding Huobi facing bankruptcy risks. He said customers’ assets are safe and stored securely in cold wallets. The firm also employs the use of multi-signature technology and reliable cloud computing to protect user assets.

“Huobi has a strong focus on technology and security,and it has implemented a number of measures to ensure the safety of its users and their assets.”

Further, he asserts that the crypto exchange has committed to transparency and compliance. It follows all relevant laws and regulations of the countries in which it operates.

Also Read: Huobi Token Falls After Reports Of Internal Conflicts Surface