The cryptocurrency exchange Huobi Global announced on October 8 that its controlling shareholder and founder, Leon Li, had sold all his shares to a merger fund under About Capital Management, making the latter Huobi’s largest shareholder and actual controller. Shortly after, rumors surfaced naming Justin Sun, founder of TRON, as the "hidden acquirer" behind the deal.
The Allegations and Denials
According to reports by Chinese independent media Wu Blockchain, citing anonymous sources:
- Justin Sun was allegedly the real buyer behind Huobi’s acquisition.
- Sun was claimed to be the core financier of About Capital’s merger fund.
- About Capital purportedly served as a bridge for Sun’s acquisition.
- The report also suggested close collaboration between Sun and FTX, which allegedly provided financial support for the deal.
Adding fuel to the speculation, Huobi Global announced the formation of a Global Advisory Board on October 10, with Justin Sun listed as a member. The same day, Sun attended Huobi’s all-hands meeting and delivered a speech stating:
"Huobi Global will undergo a series of brand upgrades and actions, all centered around HT (Huobi Token). No new tokens will be issued. We will empower HT extensively, motivating Huobi supporters. HT’s appreciation won’t just stem from market manipulation but from user confidence in the brand."
This statement further intensified external suspicions. However, Sun swiftly denied Wu Blockchain’s claims, clarifying:
- Neither he personally nor TRON were involved in Huobi’s acquisition.
- He reiterated his ongoing support for Huobi’s development.
Simultaneously, FTX founder Sam Bankman-Fried (SBF) denied FTX’s participation in the deal.
Market Response
Despite the controversy, Huobi Token (HT) saw a resurgence in investor interest:
- Price surged over 18%.
- Trading volume spiked 80%, reaching $19.7 million.
FAQs
Q1: Did Justin Sun acquire Huobi?
A: Sun denied personal or TRON’s involvement, though reports linked him to About Capital’s merger fund.
Q2: What role did FTX play in the deal?
A: SBF clarified FTX had no part in the acquisition.
Q3: How did HT’s market performance react?
A: HT’s price and trading volume rose significantly amid the rumors.
Q4: What are Huobi’s plans for HT?
A: Huobi will focus on enhancing HT’s utility without launching new tokens.
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