Crypto Exchange Huobi Returns To Profitability In Q1 After Restructuring

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By Justin Sun, de facto owner of cryptocurrency exchange Huobi Global, according to a tweet dated April 10 — Huobi saw Revenue for the first quarter of 2023 was $150 million, expenses were $120 million, and net income was $30 million. “Many actions were taken to reduce costs and increase efficiencies,” Sun said during the fourth quarter. In the second quarter of 2023, he expects the exchange to generate $187 million in revenue and cost him $76 million, with a net profit of $110 million.

Huobi was one of the largest cryptocurrency exchanges by trading volume until offboarding mainland Chinese users began in 2021. Market share has since declined from his 19% in 2020 to an estimated 2.2% in Q4 2022. Huobi Global’s “advisor” reportedly purchased his 100% stake in the exchange from the co-founder through his entity, About Capital, in November 2022.

Earlier this year, Huobi Global has reportedly laid off 20% of its workforce and slashed employment benefits as part of its restructuring. On March 10th, his Huobi Token (HT), the exchange’s native token, suffered a flash crash, causing its price to fall by more than 90% in a matter of hours.

Token has since recovered most of its losses. However, one of his primary users, who goes by the Twitter handle Lantian666, claims he lost $4 million due to margin closeouts on HT during his crash on The Flash. Lantian666 said he has yet to receive full compensation from Huobi as a result of the incident, despite his Sun’s claim that all users affected by the crash will be compensated.

Dear cryptocurrency circles, I am the owner of an account that was forced to liquidate $4 million by HT pin liquidation on Huobi platform at 5 am on March 10th.We will continue to share all the details and Huobi’s behavior at the time #ShameonHuobi pic.twitter.com/HzDf7xE2Gv

—nnn (@lantian6666) March 26, 2023