No plan to buy China’s Huobi – CEO of FTX

  • Huobi’s native token HT declined about 6%
  • Bankman-Fried has thrown lifelines to several digital asset platforms
  • Leon Li considered selling shares in the company

FTX chief executive Sam Bankman-Fried said in a tweet Monday that crypto trading had no intentions of buying China-based Huobi, which also operates one of the world’s largest digital money trading companies.

Huobi pioneer Leon Li was investigating involvement in the organization, people familiar with the matter recently told Reuters.

A deal for Li’s nearly 60% stake would net Huobi between $2 billion and $3 billion and could close as early as this month, Bloomberg News detailed in August.

Huobi operates one of the world’s largest cryptocurrency exchanges

The cryptocurrency industry has seen a sharp decline this year amid a broader gamble across business sectors due to international turmoil, violent financial strategy fixation, and years of vigorous expansion.

Bankman-Fried has recently helped a few computing platforms including crypto lending specialists BlockFi and Voyager Digital.

In July, Bankman-Fried said his organization does have two or three billion close at hand to support struggling companies that could further undermine the advanced commodities industry, but that the most obvious worst of the liquidity crisis is probably over.

The hypothesis had developed that FTX – which has provided financial lifesavers to a number of troubled crypto organizations including trader BlockFi and lending specialist Voyager Digital and could ultimately win the two firms – was planning to sell Seychelles-based company Huobi to acquire.

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FTX had held preliminary talks with Huobi to acquire a controlling stake

In mid-August, Bloomberg reported that FTX had held fundamental talks with Huobi pioneer Leon Li to acquire a larger stake in Huobi, which the company would value at at least $3 billion.

The report states that an agreement could be finalized by the end of this month and that Justin Sun, the organizer behind the Tron blockchain network, was also keen on offering the stake.

FTX recently bought Japanese exchange Liquid and also agreed to buy Canadian exchange Bitvo.

FTX was also told it was keen to bring Robinhood on board for the free exchange, but Robinhood CEO Vlad Tenev said in early August he prefers his company to be an independent company.

Nancy J Allen
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