Crypto exchange Huobi to reportedly lay off 20% of staff as industry reels from FTX collapse

Huobi plans to reduce its global workforce by 20% in the latest round of layoffs, according to a report.

According to data from CoinGecko, the company is one of the largest exchanges in the world.

Huobi had a 20% layoff ratio according to a company spokesman. The layoffs were reported by the Financial Times.

Huobi will maintain a very lean team with the current state of the bear market.

A member of the company's advisory board, Justin Sun, described the move to the news agency as a structural adjustment that would be completed by the first quarter.

When contacted by CNBC, Huobi was silent. By the time of publication, Sun hadn't responded to a direct message on the social networking site.

The Financial Times reported that Huobi had 1,600 employees.

Huobi's native token sank as low as $4.3355 Friday, down more than 7% from the previous day.

After the collapse of FTX, traders are looking for clues as to what will be the next company to go down in flames.

More than 300,000 bitcoins were moved out of centralized exchanges from November 6 to December 7.

Concerns over its own ability to cover client redemptions led to a brief pause in withdrawals of theUSDC stable coin. Since that time, it has resumed withdrawals.

Between December 12 and December 14 there was a $6 billion withdrawal from the exchange.

The world's largest exchange revealed in a statement that it had more assets than liabilities.

There are doubts about the effectiveness of proof of reserves reports, which only show a snapshot of assets.

Mazars stopped producing proof of reserves reports forcryptocurrencies on December 16 due to concerns about how the reports are understood by the public.

Huobi was acquired by About Capital Management. Sun is an adviser to Huobi.

Huobi was driven out of China after Beijing cracked down on the industry.

Huobi only does consulting and research out of China while its trading operations are outside of China. In addition to Hong Kong, South Korea, Japan and the U.S., the company has offices in other countries.