The Huobi crypto exchange's Korean arm is set to sever ties with Huobi Global and run its own business, according to a report in Korean outlet News1.
In doing so, it will negotiate the ownership of equity, the report said. More than half of the existing Huobi Korea was owned by Leon Lin, the founder of Huobi Global. The next major shareholders include Chairman Jo Guk-Bong and Korea Land Trust. Jo, who also owns a crypto mining business, is set to take a majority stake from Lin.
The Block contacted Huobi for comment but had not heard back before publication time.
The move follows a tumultuous time for Singapore-based Huobi Global, where its corporate structure has been in flux. Earlier in January it set out to cut 20% of its staff, with a spokesperson saying that a "very lean team will be maintained going forward."
A recent internal Huobi email — translated into English and obtained by The Block — also stated all domestic salaries will be paid in the tether stablecoin, with staff required “to register a Huobi account to receive salary.”
Tron founder and Huobi advisor Justin Sun also said late last year that a merger between rival exchange Poloniex and Huobi could be on the cards.
Founded in 2013, Huobi remains in the top four crypto-only exchanges by volume, according to The Block's Data Dashboard.
© 2023 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.