Justin Sun In Talks To Sell Huobi Stake, Report Says
The founder of Tron network and popular crypto figure Justin Sun is reportedly engaging in talks about selling a stake in the crypto exchange Huobi Global. According to a report by Bloomberg, this development was revealed by a person that is close to the matter.
Bloomberg reports that Sun has been meeting with potential investors trying to gauge their interest in Huobi. However, it remains unknown how large of a stake is to be sold or the valuation at which such a stake will be sold.
A Bloomberg insider disclosed that the deal is still in its “early stages”, and it cannot be said if any of these potential investors will proceed with the acquisition.
Based in Singapore, Huobi Global is one of the biggest digital assets exchanges in Asia, offering support for over 400 cryptocurrencies. However, the company experienced significant losses in recent years following the crypto ban in China in 2021.
Justin Sun Rejects Huobi Sale Rumors
Reacting to Bloomberg’s report, Justin Sun tweeted, dismissing the news as an “April Fool’s Day prank”.
He said, “As much as I love a good April Fool’s Day prank, I must deny the report that @HuobiGlobal is seeking a stake buyer. Rest assured, Huobi is committed to providing our users with a safe, reliable, and innovative platform for trading and investing in cryptocurrency.”
For many, Justin Sun’s relationship with Huobi is a complicated one. The Chinese man is well known for continuously denying owning any stake in Huobi Global, referring to himself as only an “adviser” to the exchange.
However, it is common knowledge that Huobi’s co-founder Leon Li sold his controlling stake (60%) for $1 billion last year to About Capital, a Hong Kong-based investment firm whose core investor is the Tron founder.
Moreover, Sun has used about $200 million of his personal money to keep the company afloat since the beginning of the year. In addition, he is known to work at Huobi’s head office in Singapore and represent the company in media interviews.
Sun Still In Legal Battle With SEC
In other news, Justin Sun is currently facing charges filed against him by the United States Securities and Exchange Commission.
Earlier in March, the SEC filed a lawsuit against the Tron founder for selling TRON (TRX) and BitTorrent (BTT), both of which it considers unregistered securities. The lawsuit also included charges of fraud based on alleged fake trading activity for both cryptocurrencies.
TRX trading at $0.0656 | Source: TRXUSD Chart on Tradingview.com
Justin Sun has denied both charges while saying the SEC’s regulatory framework is still in “infancy and needed further development”. In recent months, the SEC has been on a regulatory mission with charges against prominent crypto entities, including Paxos, Gemini, Kraken, etc.
Featured Image: Wall Street Journal, chart from Tradingview
