- Huobi founder Leon Li is in talks with Justin Sun and Sam Bankman-Fried to sell 60% of Huobi’s stake at $3 billion
- The deal is to be sealed at the end of the month.
- Huobi has been dealing with significant challenges which have had an adverse effect on the company’s income.
According to a report published on Friday by Bloomberg, Leon Li, the founder of China’s Huobi Group, which is one of the world’s largest cryptocurrency exchanges, is in discussions with investors to sell his nearly 60% stake in the exchange for three billion dollars.
The report, which cites sources with knowledge of the situation, says potential investors include Justin Sun, the founder of Tron, as well as Sam Bankman-Fried, who established the cryptocurrency exchange FTX.
The contract may be inked by the end of August. Li’s objectives were verified by a representative, who said that Li’s expectation is that the new owners will be more powerful and resourceful, that they will appreciate the Huobi brand, and that they will commit more resources and energy to drive the expansion of Huobi.
If it were to go through, the deal would rank among the most significant in the history of the cryptocurrency sector. However, this might be the first instance of a majority share sale by one of the biggest cryptocurrency companies in the world. Many of these companies have been forced to slash expenses and employees as a result of the current slump in the crypto industry.
In related news, Coinbase Global, a competitor exchange, posted a quarterly loss this week that was greater than projected as investors wary of the year’s crash in risky assets avoided cryptocurrency trading.
Huobi is one of the most prominent cryptocurrency exchanges in the world. Unfortunately, over the last several years, it has been forced to contend with a number of significant challenges, one of which was China’s crackdown on cryptocurrency, which had an adverse effect on the company’s income.