thecoinrise.com
Justin Sun, the founder of Tron, was revealed to be a shadow owner of the cryptocurrency exchange just one week after Huobi Global disclosed a change in the shareholder structure. However, he has denied rumors of a buyout and said that his role has actually been limited to that of a global advisor.
The largest stakeholder of Huobi, Li, has negotiated a deal to sell all of his stock in the exchange with the Hong Kong-based investment company About Capital Management. The majority ownership in Huobi Global will be under the hands of About Capital’s buyout vehicle. It’s interesting to note that Justin Sun was allegedly the M&A fund’s main investor.
The announcement comes after reports that Huobi founder Leon Li was considering selling his majority stake for over $1 billion, which would value the exchange at $3 billion. Colin Wu, a well-known crypto journalist in China, broke the story first, claiming that Sun was indeed the one who purchased the $1 billion stake. The controversial executive, though, asserted that the claim is “wrong.” Sun confirmed the same via a tweet.
I am very honored to be appointed as a member of the Global Advisory Board of @HuobiGlobal and work with industry, academic, and policy leaders to help guide and grow this innovative, vibrant, and resilient organization in its latest chapter of global expansion. Full sail ahead. https://t.co/txZspJaV4Q
— H.E. Justin Sun🌞🇬🇩 (@justinsuntron) October 9, 2022
Huobi Global’s new advisory board
Following the acquisition of the majority stake, Huobi established a global advisory board of five persons, including its co-founder Du Jun, Wang Yang, vice president of the Hong Kong University of Science and Technology, Leah Wald, CEO of Valkyrie Investment, Ted Chen, founder of About Capital, and Justin Sun of Tron. The board is in charge of directing the exchange’s global expansion.
On the other FTX founder Sam Bankman-Fried was also rumored to have bought a stake in Huobi alongside Sun. The executive, however, simply stated in his most recent tweet, “still not involved,” that he was not involved in any way.
Huobi intends to put into action a number of new international brand promotion and commercial expansion strategies after the successful transaction. The creation of the global strategic advisory board was one of these things. The cryptocurrency exchange will continue to “inject sufficient funds in margin and risk provision fund.” in the future, according to the announcement.