Huobi, China’s Largest Crypto Exchange Has Been Acquired By Capital Management In Hong Kong

In the latest report on October 8, Huobi was acquired by About Capital Management’s M&A Funds in Hong Kong. The reason for the decision to sell is that Li Lin, founder of company, was arrested and investigated by the police in 2020 and the business is not sustainable in 2022.

According to WuBlockchain, October 8 Asia time, Huobi used to be the second largest cryptocurrency exchange in the world after Binance and the largest in China with over 20 million users acquired by About Capital Management’s M&A Funds , a capital management company in Hong Kong.

Capital Management’s M&A fund mainly bought all shares of Li Lin. Some minority shareholders have opted out. Currently, the specific amount and investors of this M&A fund have not been confirmed.

Capital Management is a Hong Kong asset management company founded by Chen Yihua (Ted Chen). The company is very secretive and discreet, with very little outside information.

Huobi was founded in 2013 and received investment from Sequoia Capital and ZhenFu. Its market share has gradually increased, and after 2017, it became the exchange with the largest market share in the Chinese world.

However, since the incident of Li Lin – founder of Huobi and others being arrested by local police in 2020 has become a turning point, leading to the complete removal of Chinese users from the exchange in 2021.

After the investigation, Li Lin chose to stay in China but withdrew from business activities. After fully withdrawing in 2022, Huobi’s operations also encountered certain difficulties and began to lay off personnel. During this time, the business made a large loss (although recovered later), which led Li Lin to plan to sell more than 50% of his shares.

Rumor has it that the acquisition is worth $3 billion. It was reported that in the early days Justin Sun, FTX/SBF, and even Binance were all involved. In August, Huobi changed employee mailboxes from Huobi.com to htx-inc.com, sparking rumors of an acquisition of SBF.

However, due to political and security factors, this exchange ultimately chose to sell its capital in Hong Kong.

In addition to Huobi Global exchange, another important asset of Huobi is Huobi Technology, a company listed in Hong Kong. On September 21, its Board of Directors suggested that the company be renamed “New Huo Technology Holdings Limited”. It is not known who this company sold to.

The acquisition ended in October. On October 5, huge amount of Bitcoin was transferred between Huobi wallet addresses in 4 transactions. In the end, about 15,000 BTC was moved to a newly created address and 4,000 BTC was moved to another address. On September 22, 43,000 bitcoins circulated in Huobi, which was confused with a move to Binance. Doubtful financial inventory and transfer at the end of the acquisition.

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