Huobi Founder Sells Bitcoin Exchange to Hong Kong Investment Firm

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Leon Li Lin, the Chinese founder of Huobi Global, a Seychelles-based crypto exchange, is selling his majority stake to a Hong Kong investment firm called About Capital, according to a report. blog post today on the Huobi website.

According to the message, an agreement has been reached between the two parties that will leave “no impact on Huobi’s operational and business management teams”.

About Capital states in Huobi’s blog post that under its control, Huobi “will adopt a series of new international brand promotion and business expansion initiatives, including a global strategic advisory board led by high-profile personalities. of the industry, the injection of sufficient capital into the margin and the risk provision fund, as well as measures to further strengthen competitiveness.

Huobi’s Recent History of Compliance-Driven Changes

Huobi closed its US operations at the end of 2019 and has not reopened since. It closed its operations in China in 2021 shortly after a sweeping statewide crackdown on cryptocurrencies by Chinese authorities forced the exchange to stop registering accounts with cryptocurrency numbers. phone from mainland China and to stop derivatives trading in China in order to remain compliant.

In August, reports first emerged that Li Lin was looking to sell his majority stake in Huobi and that FTX CEO Sam Bankman-Fried and Tron CEO Justin Sun had “preliminary interviewswith him. Bankman-Fried later clarified on Twitter that FTX did not plan to acquire it.

A week after rumors of possible acquisitions first broke, Huobi’s HUSD stablecoin mysteriously slipped its $1 peg by almost 15% before take back the ankle the next day. Token issuer Stable Universal blamed a “time difference in bank opening hours” which “resulted in a short-term liquidity problem.”

And earlier this month, Huobi delisted seven privacy coins citing “latest financial regulations.”

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