Justin Sun noted that he was only on the global advisory board of the platform

TRON founder and CEO of FTX deny involvement in the purchase of Huobi stake

10.10.2022 - 13:40

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2 min

What’s new? Justin Sun, the founder of the blockchain ecosystem TRON, in a conversation with The Block, denied involvement in the purchase of a majority stake in cryptocurrency exchange Huobi. This was previously reported by analyst Colin Wu, citing “multiple sources.” Sun clarified that the claim has nothing to do with reality, adding that he is merely a member of Huobi's global advisory board.

Information on The Block's website

What else did the media write about? Colin Wu claimed that FTX crypto exchange founder Sam Bankman-Fried bought a stake in Huobi along with Sun. Bankman-Fried also told The Block that neither he nor FTX were involved in the deal.

Earlier, Huobi co-founder Leon Li sold a majority stake (60%) to Hong Kong-based investment firm About Capital Management (ACM) and stepped back from involvement with the exchange. Wu argued that ACM was only used as a “bridge” in the deal because Li feared dissatisfaction from the PRC authorities and Sun was concerned about outrage from the management of Binance, the cryptocurrency exchange that supports it.

Li began negotiating the sale of his stake in the company in August. At that time, Bloomberg also reported that possible buyers included Bankman-Fried and Sun.

Huobi was founded in 2013 in Beijing. Currently based in the Seychelles, it also has offices in Hong Kong, South Korea, Japan and the US The second largest shareholder of the exchange is the Chinese division of the US venture capital fund Sequoia Capital. The platform hosts 652 cryptocurrencies and 976 trading pairs. The daily trading volume is $477,59 million.

The platform's native Huobi Token (HT) is used to receive discounts on fees, as well as additional rewards and bonuses. As of October 10 at 13:30 UTC, HT is trading at $4,78, having gained 18,2% overnight. It has a market capitalization of $634,8 million, according to CoinGecko.

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