Media: Huobi’s South Korean subsidiary distances itself from its parent company

The South Korean unit of the cryptocurrency exchange Huobi is distancing itself from its parent company, according to local publication News1.

Huobi Korea aims to operate independently, after talks about owning a stake in the business.

More than half of the South Korean subsidiary is owned by Huobi Global founder Leon Li. Other major shareholders include Korea Land Trust and Joe Guk-Bong, according to media. The latter allegedly plans to acquire a controlling stake from Li.

On January 3, journalist Colin Wu reported that employees would be paid salaries in stablecoins instead of fiat currency, and those who disagree could be fired. At the end of December, his sources told of plans to cancel annual bonuses and to shrink the workforce from 1,200 to 600-800.

Subsequently, rumors circulated in the community about the closure of internal channels of communication with staff, threats to user funds and potential insolvency of the exchange.

Tron founder Justin Sun rejected reports of problems at Huobi. He also stressed that users’ assets are safe.

Earlier in October, Sun joined the exchange’s advisory board. He will participate in the company’s development as an adviser alongside four other representatives from traditional and blockchain companies.

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