Huobi Founder Sells Its Platform to Hong Kong Investment Firm After Closing Operations in China.
According to a blog post on Huobi’s website on October 8, Leon Li Lin is selling his controlling stake in the Seychelles-based crypto exchange Huobi Global to About Capital.
The Agreement to Leave No Impact on Huobi’s Main Operation
A deal has been reached between the two parties that won’t affect Huobi’s core operational or business management teams, according to the post.
“Will embrace a series of new international brand promotion and business expansion initiatives including a global strategic advisory board led by leading industry figures, the injection of sufficient capital in margin and risk provision fund, as well as measures to further enhance competitiveness,” Huobi said.
The US operations of Huobi have been shut down since late 2019 and have not reopened. As a result of the Chinese authorities’ crackdown on cryptocurrencies in 2021, the exchange halted operations in China and stopped registering accounts with mainland Chinese phone numbers and halting derivative trading there so as to remain compliant.
The Founder Initially Having a Talk with FTX CEO and Tron CEO
Li Lin was first reported to be interested in selling his majority stake in Huobi back in August, and FTX CEO Sam Bankman-Fried and Tron CEO Justin Sun were reportedly in “preliminary”discussions with him.
Later, Bankman-Fried clarified on Twitter that FTX had no plans to acquire it.
Just to be explicit because apparently a lot of people are saying this:
No, we are not planning to acquire Huobi.
— SBF (@SBF_FTX) August 29, 2022
“Just to be explicit because apparently a lot of people are saying this: No, we are not planning to acquire Huobi,” tweeted Sam Bankman-Fried.
It took Huobi’s cash-backed stablecoin HUSD almost 15% to drop its peg to $1 USD a week after rumors broke. Stable Universal blamed a “time difference in banking hours” for the short-term liquidity issue.
Huobi removed seven privacy coins earlier this month, saying “latest financial regulations.”