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Justin Sun Denies Huobi is Seeking a Stake Buyer

2 mins
Updated by Ryan James
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In Brief

  • Justin Sun has denied that reports of Huobi seeking a stake buyer.
  • Huobi's market share has fallen from the highs of 2020 after China banned crypto.
  • A lawsuit was filed against Sun by the U.S. Securities and Exchange Commission (SEC).
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Tron Network founder Justin Sun has denied Bloomberg’s report that Huobi Exchange is looking for a stake buyer. The crypto entrepreneur is under intense regulatory scrutiny from the U.S. SEC and recently lost his WTO ambassadorship.

In an April 1 tweet, Sun said while he loves a good April fool prank, he must deny the report. “Rest assured, Huobi is committed to providing our users with a safe, reliable, and innovative platform for trading and investing in cryptocurrency,” he added.

Some within the crypto community believe the report might have an element of truth despite Sun’s denial.

Huobi’s Stake Sale Rumors

Traditional media outlet Bloomberg reported that Justin Sun wanted to sell part of the exchange for an undisclosed sum. According to the report, Sun has been looking for potential buyers and has had initial conversations with investors.

However, the report did not provide further information about Sun’s discussions or the names of his potential investors.

Meanwhile, Sun’s recent statement further muddles the water about his relationship with Huobi. While the crypto entrepreneur said he is a “Global Adviser” to the exchange, media reports claim he acquired about 60% of the exchange in 2022 for $1 billion. Sun has denied this even though his actions suggest otherwise.

Sun has injected over $200 million of his personal funds into the exchange and has made several announcements on behalf of the exchange, suggesting he is responsible for key decision-making.

However, Huobi’s market share has continued to fall despite Sun’s intervention. The exchange’s trading volume has plummeted from the highs of 2020. For context, its trading volume in the last 24 hours fell by 41% to $382.43 million, according to BeInCrypto data.

Huobi Trading volume
Huobi Trading Volume (Source: BeInCrypto)

Sun’s Recent Troubles

Sun’s relationship with Huobi might be subjected to closer scrutiny after the recent charges against him by the U.S. Securities and Exchange Commission (SEC). The SEC alleged that Sun and his company’s sales of TRON and BitTorrent tokens violated federal securities law.

Besides that, the financial regulator accused him of using celebrities to shill the tokens and faking trading activity. Sun has denied the charges and described them as baseless.

On March 31, Sun said his term as Grenada’s ambassador to the World Trade Organization (WTO) has ended. This was after several media outlets had reported that he had been recalled much earlier.

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Oluwapelumi Adejumo
Oluwapelumi believes Bitcoin and blockchain technology have the potential to change the world for the better. He is an avid reader and began writing about crypto in 2020.