Founder of Huobi Crypto Exchange Sells Stake in Company

cryptonews.com:

Huobi founder and controlling shareholder Leon Li Lin will sell its entire stake in the Seychelles-based crypto exchange to About Capital Management, a Hong Kong-based assets management company.

According to an October 8 blog post, the buyout vehicle of About Capital will control the majority stake in Huobi Global upon completion of the transaction, which will leave “no impact on Huobi’s core operation and business management teams."

"According to About Capital, post transaction Huobi Global 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," the blog post said.

The blog post claimed that Huobi Global will be better positioned to provide trading and investment services following the buyout. However, the terms of the deal, including the buyout price, were not disclosed.

The deal comes amid a sharp crypto market meltdown that has seen many crypto exchanges lay off a big percentage of their workforce in a bid to survive the crypto winter. 

It is worth noting that Huobi Global has been struggling with various challenges recently, particularly after China’s crackdown on the sector. The exchange initially blocked Chinese residents from the platform in 2021 and completed its exit from China, its biggest market, in 2022. 

Huobi is among the world’s largest crypto exchanges. According to CoinGecko, the exchange ranks eighth in terms of trading volume and has processed over $465 million worth of trades over the past 24 hours.

Tron founder Justin Sun, who reportedly spearheads the management