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What happened to Huobi when users' assets were frozen and employees gathered to defend their rights?

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With all the chaos swirling around Justin Sun, the industry is unlikely to experience another crisis of confidence.

The Crypto Wind

Unexpectedly, the industry's first concern in 2023 is not new projects, but new disputes. Massive layoffs and platform account suspensions have put the spotlight on Justin Sun, who will become Huobi's new head at the end of November 2022. The first week of the New Year seems to have been a rough one for Huobi, who on social media is intent on returning to the top three crypto trading platforms.

layoff

Huobi will continue to cut 40% of its workforce in 2023, a person familiar with the matter said on December 30, 2022. Huobi currently employs about 1,600 people. At the same time, some Huobi employees will re-sign their contracts, recalculate their seniority, and cancel the five social insurance and one pension subsidy.

Later, Justin Sun formally told Reuters today that Huobi plans to cut about 20 percent of its workforce this year, but that "structural changes" at the company have not yet begun and are expected to be completed in the first quarter of this year.

Huobi's layoff method caused a lot of dissatisfaction among employees. The internal nailed chat records leaked from the community and the records of employees' spontaneous rights groups show that a large number of laid-off workers are trying various ways to protect their rights.

On January 6, Huobi sent an internal letter announcing the appointment of a new head of the human resources administration department of the group. It is not clear whether the dispute over layoffs will be eased.

Radical upper Pi

Son s strategy after taking the helm of Huobi can be described as "quite aggressive."

Huobi officially launched Pi on December 29, 2022 and opened for trading. In just 24 hours, Huobi rapidly increased from 0.01 USD to 345 USD, with the highest increase of 34,000 times of exaggeration within 24 hours.

However, at the current stage, Pi Network has no main network, so it cannot be charged. No Pi players can charge their Pi into Huobi. Theoretically, this is just Huobi single machine Pi coin. Many platforms have launched Pi before this, Huobi being the first major trading platform.

In response, Justin Sun said that the first principle of Huobi Coin is to abide by the principle of neutrality and not make value judgments on projects, followed by the community first, and finally respect the user's decision.

However, Huobi, who is respectful of its users, was reported to have had his account suspended due to profit from pi trading.

Source: https://twitter.com/blzi12/status/1611187921587167233

Seal an account

On January 1, 2023, quantitative trading usersoakquantization"In a post on social media, he said that his Huobi account, in which he made huge profits by flipping Pi coins at low prices, was closed, and that 8,000 USDT and 1,000 Ht coins in his account were frozen because they were judged to be" abnormal profits."

Another user, @blzi12, posted on social media that after taking profits from Pi coin trading, the user transferred part of the profits (about 65,000 USDT) to Binance, only to be frozen by Sun Ge across platforms.

According to the response from Huobi's official customer service and Justin Sun himself, Huobi judged that the accounts of these two users were rat warehouse accounts suspected of internal trading, and it was reasonable to freeze the funds.

However, according to the experiences shared by the two banned users, the two profitable users were able to access the API and successfully buy a small amount of Pi coins at a very low price at the opening of Pi coins, which has nothing to do with the "rat warehouse" accused by Huobi.

So far, Huobi has not officially accepted"oakquantizationBinance has unfrozen 65,000 USDT assets for @blzi12.

Source: https://twitter.com/ArkQaq/status/1610988124393598976

Net outflow

After FTX, the slightest disturbance on any centralized platform will freak users out. As a result of the large number of disgruntled employees, there were suggestions that Huobi might have internal rugs, which also led to demand for cash withdrawals.

On January 6, Huobi saw net outflows of $60.9 million over the past 24 hours and $94.2 million over the past week, according to data released by on-chain data analytics firm Nansen. It mainly involves transactions on Ethereum, Avalanche, BNB Chain, Fantom and Polygon chains. Withdrawals from high-balance wallets are mainly concentrated in three cryptocurrencies, USDT, USDC and ETH.

Sun Ge also responded urgently on social media, saying that Huobi has strong security capabilities and has not had any security incidents, and users' assets are very safe.

No one is happy in a bear market. The thundering companies have collapsed, and the living companies have laid off large numbers of workers. The layoffs are understandable, and Amber's previous layoffs have sparked much discussion, but almost all of those laid off have received pay and compensation. Let's just hope internal disputes don't affect customer assets. The industry is unlikely to experience another crisis of confidence.