Justin Sun’s Huobi Releases Scant Q1 Report, Raising Transparency Concerns

Huobi’s Q1 report highlights the HT burn and new partnerships, but shows a glaring lack of financial transparency.

Leon Li sitting at the brown table and holding Huobi Scant report.
  • Huobi released data on the burn rate of the HT token.
  • The report lacks crucial financial data, raising concerns about transparency. 
  • Justin Sun, the likely owner of Huobi, faces legal trouble with the SEC. 

In the crypto space, transparency is the foundation of all trust. Despite this, there were notable omissions from Huobi’s latest Q1 financial report, leading to questions about the exchange’s transparency as its owner, Justin Sun, faces legal troubles. 

Huobi, one of the world’s largest crypto exchanges, released a report for the first quarter of 2023 on Saturday, April 15. The document was notably scant on crucial financial details

Huobi Report Lacks Financial Data

While Huobi’s Q1 report gives information about token burns, it lacks basic data such as the firm’s revenue. 


In the report, Huobi reported burning 827,226 HT tokens, worth about $3.31 million. This resulted in a circulating deflation rate of 0.3826%. The exchange also touted its partnership with Gala Games, a blockchain gaming platform, and unveiled plans for a Huobi Visa Card. 

According to Huobi, the exchange allocates 20% of its revenue to burning HT to keep up demand for the token. The token burn rate indicates that Huobi’s revenue for the quarter was just $15.55 million. However, Huobi did not disclose its revenue numbers in its Q1 report. 

Revenue numbers are not the only figures missing from the report. Huobi’s Q1 2023 report lacks essential financial data, such as operating expenses, net profit, and other key metrics.


A standard quarterly earnings report typically includes information on revenue, net income, earnings per share, and operating expenses, among other financial metrics.

Financial reports typically offer a detailed look into a company’s financial health, allowing users and investors to evaluate its performance and make educated decisions. Huobi’s report lacks any of these figures, making it difficult to assess its potential performance. 

Huobi in Trouble as SEC Sues Justin Sun

Huobi’s report highlights the issues in the exchange, as its likely owner Justin Sun faces legal trouble in the US. 

The US Securities and Exchange Commission (SEC) sued Sun for alleged securities fraud and other offenses in March. The SEC claims Sun sold unregistered securities, including Tron (TRX) and BitTorrent Token (BTT).

Justin Sun’s official capacity at Huobi is that of an advisor. However, reports suggest that he is the majority owner of the HT token. Moreover, Sun frequently tweets on Huobi’s behalf

In April, Sun denied trying to sell Huobi to Binance, which allegedly turned down the deal due to regulatory concerns. 

On the Flipside

  • Huobi is not a publicly traded company, meaning it does not have to publish detailed quarterly reports.  
  • The HT token is set up to benefit from Huobi’s revenue. This is similar to the FTX token, which US regulators deemed a security. 
  • HT ownership is highly concentrated, with the top 10 holders owning 98.49% of the Huobi Token. 

Why You Should Care

A lack of transparency is one of the most glaring issues in the crypto space, which is also why US regulators have been clamping down particularly harshly on the industry. 

Read about Huobi owner Justin Sun:

Justin Sun: From Ripple Employee to Tron Founder

Read about Solana’s latest partnership:

Solana to Power Boba Guys’ Next-Gen Loyalty Program

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

David Marsanic

David Marsanic is a journalist for DailyCoin who covers the intersection of crypto, traditional finance, and government. He focuses on institutionalized crypto entities like major cryptocurrency exchanges and Solana, breaking down complex topics into easy-to-understand writing. David's prior experience as a business journalist at various crypto and traditional news sites has enabled him to maintain a critical approach to news while adhering to high journalistic integrity standards.