Li Lin’s controlling stake in Huobi, one of the largest cryptocurrency exchanges in Asia, was recently acquired by About Capital Management for an undisclosed amount. The acquisition of Huobi by the Hong Kong-based asset management firm comes shortly after the crypto exchange exited the Chinese market.
Lin’s arrest in 2020 is a significant event for Huobi’s founders
Hong Kong-based asset management firm About Capital Management recently acquired a stake in crypto exchange Huobi founder Li Lin, becoming its largest shareholder. The acquisition of the Asian crypto exchange by the “secretive” asset management firm ended rumors suggesting that Sam Bankman-Fried’s FTX, Binance, and Justin Sun were interested in or had already acquired Huobi.
According to a Wublockchain report, Lin hinted that he wanted to quit the Chinese market after being arrested by local law enforcement in 2020.
“Even without Huobi, everyone has Binance and Okx. I’m sorry if you are disappointed,” Lin reportedly said in a post shared via Wechat.
Huobi ran into more problems after pulling out of the Chinese market
After first blocking Chinese residents from its platform in 2021, Huobi, which has licenses to operate in the United States, Hong Kong, South Korea, and Japan, proceeded to withdraw from its largest market in 2022. Nevertheless, the troubles encountered by the crypto exchange after its withdrawal from the Chinese market may have forced Lin to consider leaving the crypto exchange business altogether, the report concludes.
There is no official confirmation of the amount that About Capital Management paid for Lin’s shares, but some market rumors say that the acquisition deal is worth about $3 billion.
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