Huobi Founder to Sell His Stake at $3 Billion, Bankman-Fried and Justin Sun in Talks on Purchasing

Leon Li, the founder of crypto exchange Huobi Global, is reportedly looking to sell the majority of his stakes in the company in an acquisition deal that might be worth as much as $3 billion.

Huobi to Sell 60% Stake

According to a Thursday report, Leon Li is trying to sell off almost 60% of his stake in Huobi, an exchange that accounts for 5% of all crypto trading volume. The deal is valued at between $2 and $3 billion.

According to the report, Huobi’s existing investors, including ZhenFund and Sequoia China, were informed about Li’s decision during a shareholder meeting last month.

Although the potential deal has been confirmed by a Huobi representative, they did not provide full details. 

Bankman-Fried and Justin Sun in Talks

Reports suggest that Li envisions the new shareholders as “powerful and resourceful” people. In addition, the potential stakeholders should place a high value on the Huobi name and put more resources into driving its growth.

Insiders familiar with the deal have stated that FTX founder Sam Bankman-Fried and Tron founder Justin Sun have entered preliminary talks with Huobi on purchasing the stake.

Since the crypto winter started, Bankman-Fried’s company has given crypto-lender Voyager Digital a $200 million loan and a $250 million revolving credit to BlockFi. He recently said that his company still has a “few billion” to shore up struggling firms.

On the Flipside

  • Huobi, which was founded in China, has said that the government’s crackdown on the trade of digital assets caused it to lose roughly 30% of its revenue.

Why You Should Care

The possible $3 billion deal, which is said to be completed before the end of this month, could turn out to be one of the largest in the cryptocurrency market.

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed to be financial legal or tax advice. Trading Forex, cryptocurrencies, and CFDs poses a considerable risk of loss

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Author

Milko is a DailyCoin reporter, mainly focused on Ethereum (ETH), Cardano (ADA), and their founders (Vitalik Buterin and Charles Hoskinson). Milko is an avid follower of crypto and blockchain technology and has written thousands of articles on the subjects. He finds joy in transforming complex issues into written content that anyone can understand. Milko has used and analyzed numerous exchanges, such as Coinbase, FTX, and Binance. He also closely follows all of the latest news around the largest decentralized exchanges (DEXs).