According to Wu Blockchain, "Regulations governing investment behavior of Huobi Group employees" were created to regulate platform transactions and employee investments, as well as to prevent insider trading, "rat warehouses," and other illegal activities. It will become effective on November 23, 2022.
Included in the content:
- In principle, all employees are allowed to make various investments such as private placement and public offering on the primary market, but they must not make unwarranted promises to get be invested in shares with Huobi’s Position Rights.
- For the relevant self-operating currencies (including but not limited to HT, HPT, TRON tokens, etc.), all employees are not allowed to use inside information to conduct transactions mouse warehouse activity.
- In principle, employees of the trading departments are not allowed to use non-company accounts on the exchange to participate in secondary market transactions [except for 20 currencies leading currencies by market capitalization and platform-owned currencies such as HT].
- For listed assets, employees of departments involved in the listing of assets must proactively disclose asset holdings to the audit department; staff holding assets may not participate in assessments, business negotiations, operations, etc. of property.
- The audit department will check the investment and transaction situation of employees from time to time, if the above violations are detected, they will be handled according to “Huobi Group V3.1 High Voltage Line” depending on the situation. according to the severity of the circumstances and the profit situation.
The power is concentrated in the hands of a management department due to lax management, pushing Huobi into the whirlpool of death.
CEO Zhu Hua was chastised and accused of causing the crypto company to suffer huge losses in 2022, specifically a loss of up to $150 million, which is also the main reason why the exchange's founder, Leon Li, is in talks with a group of investors to sell most of his shares at a possible valuation of up to $3 billion.
After the acquisition in early October, Justin Sun, who is suspected to be the true owner of Huobi, is taking over the company as a global consultant in an effort to rebuild the empire.
Huobi recently issued an internal letter restructuring the company into 17 departments reporting to Justin Sun and other committees. Some of the new leaders are former TRON employees.