Crypto magnate Justin Sun has been making headlines recently for his involvement in Huobi Global, one of the world’s leading cryptocurrency exchanges. However, recent reports suggest that Sun may be looking to sell his stake in the company amidst ongoing legal troubles with the United States Securities and Exchange Commission (SEC). This article delves into the various aspects of this unfolding story.
Huobi Global Ownership Controversy:
Last year, Justin Sun acquired Huobi Global for a staggering $1 billion from Hong Kong-based investment company About Capital, which was managed by the exchange’s creator and primary shareholder, Leon Li. Since then, Sun has contributed approximately $200 million to the support of the exchange.
However, recent reports from Bloomberg suggest that Sun has been in talks with potential investors about selling a stake in Huobi Global. An unnamed source with intimate knowledge of the situation has confirmed these discussions, while a Huobi Global advisory board member also stated that Sun had contacted investors about selling shares.
Sun’s Response to the Allegations:
Despite these claims, Justin Sun has denied any ownership interests in Huobi Global and labeled the article as an April 1st joke. He emphasized that the business is focused on providing secure crypto trading and investment services and has no plans to seek a new owner. This denial comes amidst a backdrop of declining trading volume for Huobi, which has dropped below the top ten in the past twenty-four hours.
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. ❤️
Complicating matters, the United States SEC has accused Justin Sun of breaking securities laws and violating anti-fraud and market manipulation statutes. Sun has dismissed these allegations as “lacking validity” and remains committed to building a decentralized banking system. He also criticized the SEC for its failure to establish transparent regulatory guidelines and rules of conduct.
Recent Developments and Huobi Token Price:
In a move to bolster its blockchain ecosystem, Huobi Global announced a strategic partnership with Gala Games for web3 and layer-1 development this week. However, the current price of Huobi Token (HT) stands at $3.66, with the token price moving sideways for the past week despite a general market recovery.
With Sun’s denial of the allegations and Huobi’s strategic partnership with Gala Games, it remains to be seen how the situation will unfold and what impact it will have on the broader crypto market.