The controlling shareholder of Huobi Global, a crypto exchange, on October 8, 2022, moved to sell off its entire shareholding in Huobi Global to About Capital Management (HK) Co., Limited.
In a report by Bloomberg, the founder Leon Li considered selling the majority of his stake, worth over $1 billion, equivalent to $3 billion of the exchange.
According to Li, Huobi’s exit from the Chinese mainland market in 2021 followed accelerated globalization despite a challenging market space and added to the reason Huobi considered a new shareholding structure with a global vision and resources. He said, “We believe the successful acquisition by About Capital vehicle will contribute to Huobi’s global expansion in both aspects.”
The transaction, however, will not license the controlling shareholder to have an impact or change on Huobi’s core operation and business management teams, Huobi Global said in an announcement.
Post transaction, Huobi Global will take a new turn to embrace many new cross-border brand promotions, initiatives for business expansion, injection of Capital, risk management fund, competitive enhancement strategies, and an advisory board led by notable figures in the industry, according to About Capital.
About Capital added that upon successfully executing the strategies, “Huobi Global will be well positioned to provide first-class trading and investment services to international investors.”
Huobi Global, in a public post, notified its users that the firm had exited entirely from mainland China business on December 31, 2021, which involves the shutdown of mainland China user accounts. In addition, the firm advised users of the platform from mainland China who are yet to complete their asset withdrawal to check and withdraw their balance.
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