Justin Sun has stealthily acquired Huobi whilst being appointed as a member of the exchange’s Global Advisory Board.
His Excellency took to Twitter to announce his appointment on the board, retweeting a post from Huobi. “I am very honored to be appointed as a member of the Global Advisory Board of Huobi Global 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,” he tweeted. “Full sail ahead.”
However, on 8 October 2022, Huobi released a statement revealing that Hong Kong based firm About Capital Management has purchased the entire shareholding of Huboi Global. “Upon completion of the transaction, the buyout vehicle of About Capital will control the majority stake in Huobi Global,” the statement reads.
Huobi further added that whilst the deal has “no impact on Huobi’s core operation and business management teams,” the new fund will bring expansion plans to the exchange.
Following the transaction, Huobi Global said it will “embrace a series of new international brand promotion and business expansion initiatives, including a global strategic advisory board led by leading industry figures, the injection of sufficient capital in margin and risk provision fund, as well as measures to further enhance competitiveness.”
WuBlockchain reports that Justin Sun is the “core investor” of About Capital Management, which operates as an M&A fund. “At present, Justin Sun is vigorously recruiting, and some departments of Huobi are also taking over,” the publication said.
Sun responded to WuBlockchain by saying he “didn’t participate,” despite his social media advisory board member update. Other Huobi advisors include Chen Yihua, founder of About Capital, Du Jun, Vice President of Hong Kong University of Science and Technology Wang Yang, and Valkyrle Leah Wald.
Huobi founder Li Lin first revealed he was looking to sell his majority stake in August. At the time FTX CEO Sam Bankman-Fried as well at Sun held “preliminary talks” with him. Bankman-Fried then said on social media that FTX was out.
Chen Yihua, who is a former member of About Capital Management as well as a partner of Jinglin Assets – China’s number 1 private equity firm – said the acquisition was more of a “bridge” for Sun’s acquisition.