Huobi co-founder Leon Li is in talks with a group of investors to sell 58% stake. The valuation of the Bitcoin exchange is estimated at $2 billion to $3 billion, according to Bloomberg sources Bloomberg.
According to the publication, among the potential buyers are Tron Foundation founder Justin Sun and the founder of FTX and Alameda Research Sam Bankman-Fried.
The deal could close as early as the end of August. Major shareholders—ZhenFund and Sequoia China—were informed about the ongoing negotiations at the shareholders’ meeting in July.
A platform spokesperson confirmed the forthcoming deal, but did not disclose details. FTX declined to comment, Justin Sun denied the reports of talks with Li.
The agency declined to answer whether the Hong Kong-registered Huobi Technology Holdings would be included in the deal’s scope. The firm manages digital assets for professional investors and holds a license from the local securities regulator.
Back in September 2021, amid a new wave of crackdowns by Beijing, Huobi halted registration of new users in mainland China.
A month later Huobi finally curtailed trading of futures and other crypto-derivatives in the PRC.
In 2022 Huobi obtained licences to operate in several jurisdictions, including Dubai, Gibraltar, United States and New Zealand. In the summer the company closed its representation in Thailand after the revocation of its license by authorities.
In June, media reported plans for Huobi to cut its workforce by 30%.
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