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Huobi Korea to Cut Ties With Parent Company

Huobi Korean chairman Cho Kook-bong will be taking over Huobi Global co-founder Leon Li's shares in the exchange.

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Huobi's Korean arm is reportedly severing ties with Huobi Global, according to Korean news outlet News1.

Approximately 72% of shares in Huobi Korea are owned by Huobi Global co-founder Leon Li. Huobi Korean chairman Cho Kook-bong, who is also the owner of a major crypto-mining operation in Korea, will be taking over Li’s shares in the exchange. The entity will also undergo a name change, the report said.

The crypto community has been scrutinising Huobi's financial health in recent days.

Last week, it was reported that Tron founder and Huobi advisor Justin Sun told employees that the exchange would be paying salaries in USDT/USDC instead of fiat, and employees who are unable to accept this change in policy may be dismissed.

Huobi also reportedly shut down internal employee communication groups and feedback channels due to a rumoured rebellion within the company.

Blockhead reached out to Huobi on January 3 for comments but has yet to receive a reply.

Confidence shaken?

On Friday, Tron's native token, TRX, tumbled nearly 8% over 24 hours, according to data from CoinGecko. Huobi’s native HT exchange tokens also lost nearly 11% of its value before rebounding over the weekend.

Sun has attempted to allay fears in recent days, stating that Huobi's strategy remains to be "Ignore the FUD and Keep Building". and that users' funds remain "safe."

However, Sun transferred US$100 million in stablecoins to Huobi amid the wave of withdrawals last week. On Friday, data from blockchain analytics firm Nansen showed that Huobi recorded US$60 million in fund outflows within 24 hours.

"It just shows the confidence to Huobi exchange," Sun said in a telegram message, adding that the transfer were "just my personal funds."

In October, Huobi was acquired by About Capital Management, a Hong Kong-based asset management firm in which Sun is a major investor.

Read more: Justin Sun Silently Acquires Huobi, Joins Advisory Board