Leon Li, the co-founder of global cryptocurrency exchange Huobi, is reportedly in talks to sell most of his stake in the company, which could be valued at more than $1 billion.
Reportedly, Li has been in talks with multiple financiers looking to offload a 60% stake in the crypto firm, which could be valued at more than $1 billion and some believe it could reach $3 billion.reported Bloomberg.
A Huobi spokesperson confirmed to Bloomberg that the co-founder is in talks with numerous international giants to sell his majority stake in the cryptocurrency exchange, without disclosing details.
Apparently, Li briefed other company backers on his decisions at a shareholders’ meeting in July this year. Li has transferred his CEO duties to Hua Zhu, to focus on his health.
The report also claimed that global cryptocurrency exchange FTX and Tron founder Justin Sun were some of the first investors in talks with the Huobi co-founder. Huobi did not respond to requests for comment from Cointelegraph by press time.
The report also stated that the deal could close by the end of this month. Once completed, it could be one of the biggest deals since the cryptocurrency market turmoil that began in May of this year.
The market crash has also become an opportunity for crypto giants such as FTX, which has pledged $1 billion in bailouts for crypto exchanges that are struggling to stay afloat due to heavy losses and a lack of funds. capital.
Huobi was founded in 2013 and currently accounts for over $1 billion in daily trading volume. The cryptocurrency exchange gained popularity after the closure of BTCC and soon became the center of Chinese cryptocurrency traders. The exchange ended up shutting down its operations for Chinese users after the Beijing government deemed all cryptocurrency transactions illegal and banned foreign exchanges from offering their services.
Huobi has undergone significant international expansion since the Chinese government ban, as it acquired licenses in Dubai and New Zealand, followed by a license from the US Financial Crimes Enforcement Network (FinCEN).
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