Huobi Denies Rumors of Layoffs and Insolvency; Net Outflows Over $60 Million

9. January 2023 By admin Off

• Huobi net outflows have crossed over $60 million within the past 24 hours, according to a report by Nansen.
• The increase in outflows was allegedly triggered by rumors circulating on Twitter about Huobi laying off staff and shutting down internal communications amid insolvency issues.
• A spokesperson for Huobi denied the rumors, stating that the planned layoff ratio is about 20%, but has not yet been implemented.

Cryptocurrency exchange Huobi has seen a significant increase in net outflows over the past week. According to a report by Nansen, approximately $94.2 million has flowed out of the exchange within the past week. Within the past 24 hours alone, approximately $60 million has flowed out of the exchange.

The significant increase in outflows from the exchange was allegedly triggered by rumors circulating on Twitter about Huobi laying off staff and shutting down internal communications amid insolvency issues. Nansen also reported that a significant portion of withdrawals were in Tether USDT, USD Coin USDC, and Ether ETH from wallets with high balances.

In response to the rumors, a spokesperson for Huobi told Cointelegraph on Jan. 6 that the rumors of Huobi firing as many as 40% of employees were untrue. The spokesperson stated that the planned layoff ratio is about 20%, but it is not implemented yet. The layoffs are allegedly a part of ongoing restructuring following Justin Sun’s acquisition of the firm.

Huobi also denied the rumors that they are facing insolvency issues. They stated that the rumors are baseless and that the exchange is in good financial health. They also reassured their users that the exchange is working to ensure the safety of funds and that users’ funds are secure.

By taking this step, Huobi hopes to allay any concerns that users may have about the exchange’s financial health and reassure them that their funds are safe. Despite the rumors, Huobi is continuing to operate as usual and has not suffered any disruption in services.